Big good news for central employees and pensioners.The government may soon announce an increase in dearness allowance (DA) and dearness relief (DR). It is believed that this could be the last DA hike under the 7th Pay Commission. Know when you will get the benefit and how much the DA increase.
What is dearness allowance (DA) and why is it given
Dearness allowance is given to government employees and pensioners to help them deal with rising inflation. Its purpose is to maintain their standard of living. It is a part of the salary, which is calculated from time to time.
When will you get the gift of dearness allowance
The government revises dearness allowance twice a year – first in January and second in July. This time, the new rates will come into effect from July 1, but it is usually announced in September or October. In such a situation, employees will also get the arrears of July, August, and September. Employees hope that the government will announce a DA hike in September, i.e., before the festive season. This time, Diwali is on October 20, so the government can give a great Diwali gift to employees and pensioners by adding arrears to the September salary.
How is dearness allowance decided
DA is calculated on the basis of the Consumer Price Index (CPI-IW) for industrial workers. The Labor Bureau releases this data every month. Under the 7th Pay Commission formula, the government decides DA based on the average CPI-IW of the last 12 months.
How much can the DA increase this time
At present, the dearness allowance is 55%. According to media reports, this time it is likely to increase by 3% to 4%. If the government approves a 3% increase, the DA will increase to 58%.
What will be your salary and pension benefit
The increase in DA will have a direct impact on the monthly income of the employees. Understand with an example:
If the basic salary of an employee is ₹ 18,000, then after a 3% increase, his monthly income will increase by ₹ 540.
Similarly, pensioners receiving a basic pension of ₹ 9,000 will get a benefit of ₹ 270 every month.
It will completely depend on the government how much increase in DA it approves. The Cabinet may take a final decision on this in September-October.
Will it be the last increase of the 7th Pay Commission
The government is preparing to implement the 8th Pay Commission from January 1, 2026. In such a situation, this may be the last increase in dearness allowance under the 7th Pay Commission. If this happens, then this news becomes even more important for lakhs of employees and pensioners.
