7th Pay Commission: DA for central employees set for 4% hike; annual salary to go up by Rs 6840-27,312 across pay matrix

by Shubham Shukla

7th Pay Commission latest news: Dearness Alowance (DA) is expcted to increase by 4 per cent this time which will be implemented from the period starting 1 July 2022. The DA hike will likely result in an increase of amount between Rs 6840-27,312 on an annual basis across pay matrix. Zee Business' Shubham Shukla reports.

Finally some great news has come for the Central Government employees. It is now confirmed what they will be getting as their Dearness allowance from 1 July 2022. According to the people in the know, the DA hike is expected to be 4 per cent and an announcement on this is also to likely come soon.

Zee Business has learnt through its sources that the decision on this could be made during the upcoming Cabinet Meeting in the first week of August.

The recently declared All India Consumer Price Index (AICPI) suggest that the hike could be to the tune of 4 per cent.

How much was the AICPI Index in May?

There was a big jump in the AICPI for the month of May 2022 and was at 129. In April, it was at 127.7. 

Any hike in the DA is based on AICPI numbers.

If the June AICPI numbers go further up, it is quite likely that the DA hike would go up.  

The new DA hike will be implemented from 1 July 2022. The employees will also get the arrear of the difference in July and August.

Currently the central government employees are getting 34 per cent DA hike. After the increase the DA will be 38 per cent. On a basic salary of Rs 18,000, the annual DA increase will be Rs 8640.

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Calculation on minimum basic salary:

1. Basic Salary – Rs 18,000

2. Current DA at 34% - DA hike by Rs 6120 per month

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3. New DA at 38 per cent - DA hike by Rs 6840 per month

4. DA Increase – Rs 6840- 6120 = Rs 720 per month

5. Annual Salary increase Rs 720X12= Rs 8640

Calculation on maximum basic salary:

1. Basic Salary – Rs 56900

2. New DA at 38% - DA hike by Rs 21622 per month

3. Current DA at 34 per cent – 19346 per month

4. DA Increase - 21622-19346= 2276 per month

5. Annual Increase in DA – Rs 2276 X12= Rs 27,312

The numbers are released by Ministry of Labour & Employment on the last working day of the month. The AICPI index numbers are based on the data collected from 88 industrial centers across the country.