7th Pay Commission: Today is a very important day for lakhs of central government employees and pensioners. In fact, the announcement of increase in DA for January-June 2025 can be made today. According to reports, the issue is expected to be discussed today in the Union Cabinet meeting regarding the increase in Dearness Allowance (DA).
What is DA and DR?
DA i.e. dearness allowance is given to central government employees, while it is given to pensioners in the form of Dearness Relief (DR). This allowance helps in reducing the impact of inflation.
When will the announcement be made?
DA hike was expected to be announced before the festival of Holi, but it did not happen. Now a decision can be taken on this in the cabinet meeting to be held on March 19.
How much increase is expected?
DA is expected to increase by 2 per cent based on the All India Consumer Price Index (AICPI) for July-December 2024. This will be the lowest increase since July 2018. Understand it like this that if the basic salary of an employee is Rs 18,000, then a 2 per cent increase will increase his salary by Rs 360. Let us tell you, the current DA is 53 per cent. There was a 3 per cent increase in October 2024. If the new DA increases by 2 per cent, it can be 55 per cent.
Can there be an increase of 3-4 per cent?
Some experts believe that the government can make a big increase of 3-4 per cent, as the RBI has estimated the inflation rate (CPI) to be 4.8 per cent for the current financial year. Actually, the increase in DA will strengthen the financial position of employees and pensioners and will help in reducing the impact of inflation.
This increase will be effective from January 1, 2025 and employees will also get arrears for this period. This will be the first DA hike after the announcement of the 8th Pay Commission in January 2025. The term of the 7th Pay Commission will end in December 2025 and the recommendations of the new Pay Commission will be implemented from January 2026.
However, it is believed that the new Pay Commission will be able to submit its report to the government before January 1, 2026, so the recommendations of the 8th Pay Commission may be implemented in the next financial year.
What do the figures say?
DA hike is assessed on the basis of All India Consumer Price Index (AICPI). According to the data of July-December 2024, DA is likely to increase by 2 percent. A 2 percent increase will increase the salary of an employee with a basic salary of Rs 18,000 by Rs 360. Whereas, a 3% increase would result in an increase of Rs 540 in the basic salary of Rs 18,000.
