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7th Pay Commission: Great News on DA for Central Government Employees, 4% Salary Hike Effective This Month

7th Pay Commission DA Increase: Exciting news awaits Central Government employees as we approach the end of May. After a few months of anticipation, the clarity regarding the dearness allowance data for central employees has finally emerged.

Based on the April data of the AICPI (All-India Consumer Price Index), it has become evident how much of a hike in DA the central employees will receive this time. The AICPI index figures for April show a significant rise, indicating that the employees’ DA will increase from 42 percent to 46 percent.

42 percent dearness allowance at present

Currently, the government provides a dearness allowance of 42 percent to its employees. However, with the proposed increase of 4 percent, the DA will rise to 46 percent. The recent rise of 0.72 points in the AICPI (All India Consumer Price Index) index indicates this positive change. Around 52 lakh central employees and 48 lakh pensioners will benefit from this increase.

The new dearness allowance was implemented by the government starting from January 1, 2023, and the updated DA will come into effect from July 1. The government is expected to make an official announcement regarding this in either August or September.

It is important to note that the increase in the dearness allowance for central employees is determined based on the AICPI index. The AICPI data for a particular month is released at the end of the following month. In May, the April figures were announced, which showed an increase compared to March. The index rose from 133.3 points in March to 134.02 points in April. This indicates a significant increase in the DA for this period.

In february the number decline

While there was a decline in the index in February, a steady rise has been observed in the subsequent months from January to April. The index stood at 132.8 points in January, decreased to 132.7 points in February, increased to 133.3 points in March, and further rose to 134.02 points in April.

Based on the April AICPI index, the dearness allowance has exceeded 45 percent, reaching 45.04 percent. The figures for May and June are yet to be released. With the DA crossing the 45 percent mark, it is evident that the increase of 4 percent will raise it to 46 percent. Initially, based on the March figures, the DA score was 44.46 percent.

Who releases the data?

The release of data related to the dearness allowance is determined by the AICPI index. The Ministry of Labor releases the figures of the All India Consumer Price Index (AICPI) on the last working day of each month. This index is prepared for 88 centers across the country.

How much money will increase?

To illustrate the impact of the DA increase, let’s consider a government employee with a basic salary of Rs 18,000. Currently, they receive a dearness allowance of Rs 7,560, calculated at 42 percent. However, if the DA increases to 46 percent, the dearness allowance will rise to Rs 8,280 per month. This results in a monthly salary increase of Rs 720.


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