7th Pay Commission BIG UPDATE: Govt Likely To Announce DA Hike on THIS Date, Know How Much Salary Will Rise

The DA increase will likely be 4% rather than the earlier predicted 3%. Once announced, the increase will take effect on July 1, 2023.

7th Pay Commission News: The Modi government is likely to announce the DA Hike for government and retired employees. According to the reports, the government is expected to announce the wage boost before the holiday season. The DA increase will likely be 4% rather than the earlier predicted 3%. Once announced, the increase will take effect on July 1, 2023.

Given that Navratri begins on October 15 and Dussehra is on October 24, a notification of a DA hike and arrears would be a welcome and timely present for government employees and pensioners.

According to a report by ET, a 4 percent hike in dearness allowance (DA) is expected for central government employees. It is important to note that the Dearness allowance for Central government employees and pensioners is calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. Following this adjustment, the dearness allowance is projected to reach 46 percent.

DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year — January and July. Currently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance.

Check How DA is Calculated

The basic formula to increase DA is based on the latest Consumer Price Index for Industrial Workers (CPI-IW). Notably, the DA is given to government employees, while DR is given to pensioners.

The DA and DR are hiked twice a year — January and July. Right now, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance.

When last time DA was hiked in March 2023, it was increased by 4 per cent to 42 per cent. Given the current inflation rate, the next DA hike is expected to be 3 per cent this season.