7th Pay Commission Big Update: Is Modi government planning to give DA hike before Diwali? Here’s what we know

The decision on the DA hike could be finalised in the next Cabinet meeting, scheduled just days before the festival.

7th Pay Commission: The Modi government is likely to announce a 3 percent Dearness Allowance (DA) hike for central employees just ahead of Diwali, as per reports. Previously, it was reported that the Central government might announce the hike following the Union Cabinet meeting on October 9. However, it has now been indicated that the official declaration may come closer to the Diwali celebrations.

The decision on the DA hike could be finalised in the next Cabinet meeting, scheduled just days before the festival.

How Much Increase In Dearness Allowance (DA)?

There is to be an increase of 3 percent in dearness allowance for central employees. Currently, they are getting 50 percent DA from January 2024. But, after an increase of 3 percent, it will become 53 percent. According to the AICPI index, the total dearness allowance has reached 53.36 percent by June 2024. But, the government does not count decimals. Therefore only 53 percent will be decided.

How Was 6 Month AICPI Index?

Month	Index Data	Dearness Allowance
January 2024	138.9 Points	50.84 %
February 2024	139.2 Points	51.44 %
March 2024	138.9 Points	51.95 %
April 2024	139.4 Points	52.43 %
May 2024	139.9 Points	52.91 %
June 2024	141.4 Points	53.36 %

How Much Salary Will Increase?

According to the 7th Pay Commission, the basic salary of Central employees at Level-1 starts from Rs 18000 to the maximum bracket of Rs 56900. 

Salary Calculation On Basic Pay (Rs 18,000)

1. Basic salary of employee Rs 18,000
2. New Dearness Allowance (53%) Rs 9540/month
3. Till now dearness allowance (50%) is Rs 9000/month.
4. How much dearness allowance increased 9540-9000= Rs 540/month
5. Increase in salary for 6 months 540X6= Rs 3240

Salary Calculation On Maximum Basic Pay Of Rs 56900

1. Basic salary of employee Rs 56,900
2. New dearness allowance (53%) Rs 30,157/month
3. Till now dearness allowance (50%) is Rs 28,450/month.
4. How much dearness allowance increased? 30,157-28,450 = Rs 1707/month
5. Increase in salary for 6 months 1707X6= Rs 10,242

(Note: This calculation has been done on the basis of estimates. The final salary is formed after adding other allowances to it.)