7th Pay Commission- Right now everyone is talking about 8th Pay Commission. In the other hand there is a less talking about next DA hike under 7th Pay Commission. If you are a government employee, then good news is waiting for you. The central government may give a major gift to its employees and pensioners this Diwali. The government may announce a 3% increase in dearness allowance (DA). If this happens, the current 55% DA will increase to 58%. This will provide relief to millions of employees and pensioners.
DA revision happens twice a year
First time for the period from January to June
Second time for the period from July to December
In March 2025, the government increased the DA by 2% for the January-June period, taking it from 53% to 55%. A 3% increase for the July-December period is now under discussion.
What will be the impact of a 3% increase?
DA is directly linked to an employee’s or pensioner’s basic salary or pension. If a pensioner’s basic pension is Rs 9,000, then at the current 55% rate, they receive Rs 4,950 as DA. This translates to a total pension of Rs 13,950. At 58%, the DA will increase to Rs 5,220, resulting in a total pension of Rs 14,220. This means a total benefit of Rs 270. If an employee’s basic salary is Rs 18,000, they currently receive Rs 9,900 as DA, resulting in a total salary of Rs 27,900. At 58%, the DA would be Rs 10,440, resulting in a total salary of Rs 28,440. This means a total benefit of Rs 540.
How is DA decided?
Dearness Allowance (DA) is based on the Consumer Price Index for Industrial Workers (CPI-IW). As inflation rises or falls, DA is adjusted accordingly to maintain the purchasing power of employees and pensioners. Although the government hasn’t made an official announcement yet, traditionally, such decisions are usually announced after Navratri and before Diwali. This time, it’s expected that the government will not miss this opportunity to give employees and pensioners this gift.