7th Pay Commission: Narendra Modi-led government did not announce any special increment for Central government employees and others in their Union budget 2019. Besides, there was no change in the tax slab and no change in the limit of tax exemption in the budget which was presented on July 5, 2019. The Budget also failed to mention anything about the 7th CPC-based fitment factor. However, experts suggest that the Dearness Allowance (DA) increment may be increased to 5%.Also Read - Good News For Pensioners: Centre Announces Hike in Dearness Relief For This Category of Retired Employees

Harishankar Tiwari, Former Secretary and Assistant Secretary of All India Audit and Accounts Association in Allahabad, who calculates the DA of government employees, told Zee Business Online that a five per cent increase in DA is possible because as per the Consumer Price Index (CPI) data, inflation had increased in April 2019. However, the increment is not yet confirmed as the CPI statistics for June 2019 are yet to be released by the end of July. Also Read - 7th Pay Commission: Central Govt Employees Likely to Get 4% Hike in Dearness Allowance in July

Notably, if a 5% hike is proposed, then the DA of employees will increase by up to 17%, which will then be the highest DA increment so far since the regulation of 7th pay commission in 2016. RK Verma, Coordinator of the State Employee Joint Council, UP told  Zee Business Online, “This time there (are) more chances in DA increment because inflation rates [have] been increased in CPI data of April and May 2019.” Also Read - 7th Pay Commission: Good News For Govt Employees! Chhattisgarh Hikes Dearness Allowance By 5%

According to the official website of Labor Department, i.e., labourbureau.gov.in, the base year for All India Consumer Price Index (AICPI) is 2001. The government has released the AICPI of May on 28 June which showed an increase to 314. Notably, the AICPI was 312 in the month of April. According to a report, Harishankar Tiwari said that if the AICPI increased by 1 point in June or if it remained the same at 314, then the DA would increase by five per cent. In case there is a drop, then the DA can be reduced to 4 per cent.

Here is how DA is calculated:

Percentage of DA = {(Average of All-India Consumer Price Index for the past 12 months (Base year 2001=100) -115.76)/115.76} x 100.