7th Pay Commission: What is Dearness Allowance (DA) and when is hike announced for central government employees?

7th Pay Commission: The central government employees eagerly await an announcement on the Dearness Allowance ( DA) hike. So, when is DA expected for government employees? According to various media reports, the central government is expected to announce in October. However, no official details regarding the DA hike have yet been released. Usually, this happens around Diwali only. According to sources, the government may reveal a 3-4 percent DA hike in October, just ahead of Diwali, as per several media reports.

When was the DA hike announced in 2023?

Last year, the DA increase was announced in the first week of October.

What is Dearness Allowance (DA)

Dearness Allowance (DA) is a percentage of the basic salary paid to employees to offset the impact of inflation on their cost of living. It is adjusted periodically, usually every six months, to account for changes in the cost of living index.

DA hike

The DA (Dearness Allowance) hike refers to an increase in the allowance given to government employees to help offset inflation and rising living costs. The government typically announces this adjustment periodically.

As per a report in News 18, if someone's monthly salary is ₹30,000 and their basic pay is ₹18,000, they currently receive a dearness allowance (DA) of ₹9,000, which is 50% of their basic pay.

Current Situation:

Basic Pay: ₹18,000

Current DA: ₹9,000

If there’s a 3% hike in DA:

New DA = ₹9,000 + ₹540 (which is 3% of ₹18,000)

Revised DA: ₹9,540

If there’s a 4% hike in DA:

New DA = ₹9,000 + ₹720 (which is 4% of ₹18,000)

Revised DA: ₹9,720

Historically, the government has made these announcements close to Diwali, while DA hikes for January are often revealed around Holi in March.

The Centre usually increases DA and dearness relief for employees and pensioners twice yearly, in January and July, with announcements typically made in early March and October.

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