Last update:
7th Pay Commission: The upcoming DA Hike, which will be effective from January 1, 2025, is expected to be declared in March around Holi.
7th Pay Commission: DA Hike is announced twice a year (with impact from January and July).
7th Pay Commission da Hike: Also in the form of 8th pay commission It is expected to be implemented next year, central government employees will receive at least two DA hikes under the current. 7th pay commission – In March and October. The upcoming DA Hike, which will be effective from January 1, 2025, is expected to be declared in March around Holi. However, there is no official announcement on this.
The DA Hike, which is declared twice a year (with effective from January and July), increases the salary of the central government employees as per the inflation rate.
In October 2024, in the previous DA Hike, central government employees received a 3 percent DA hike from July 1, 2024. After hike, DA increased from 50 percent to 53 percent of the original salary to 53 percent. Pensioners also got equal increase in inflation relief.
7th Pay Commission: How much will the salary increase?
According to the expectations of the Employees Union, the central government may announce a 3-4 percent increase for employees this time around Holi in March 2025.
On this DA hike, the salary of the central government employee of the entry-level, who has the basic salary of about Rs 18,000 per month, effective from January 1, 2025, the limit of Rs 540-720 per month will increase.
If someone’s salary is Rs 30,000 per month and has a basic salary of Rs 18,000, then he now gets an allowance of Rs 9,000, which is 50 percent of the basic salary. However, after an expected 3 percent increase, the employee will get Rs 9,540 per month, which is Rs 540 more. However, in the case of 4 percent da hike, the employee will get a revised DA of Rs 9,720 per month.
Therefore, if someone has a salary of about Rs 30,000 in a month with Rs 18,000 as a basic salary, then his salary will increase by Rs 540-720 per month.
However, according to a Financial Express report, the latest CPI-IW indicates a 2% increase in DA for central government employees, effective from January 2025, it has reached 55.98% under the 7th CPC.
DA is given to government employees, while DR is given to pensioners. DA and DR are increased twice a year – January and July. Currently, more than one crore central government employees and pensioners are getting 50 percent dearness allowance.
How does the government decide on DA Hike?
DA and Dr. Hike is decided on a percentage increase in the 12 monthly average of the All India Consumer Price Index (AICPI) for the end of June 2022. Although the central government amends allowances every year on 1 January and 1 July, the decision is usually declared in March and September.
In 2006, the central government revised the formula to calculate the DA and DR for central government employees and pensioners.
Dearness allowance percentage = (average of the All India Consumer Price Index (base year 2001 = 100) for the last 12 months -115.76) /115.76) X100.
For central public sector employees: dearness allowance percentage = ((base year 2001 = 100) for the last 3 months -126.33) /126.33) X100.
8th Pay Commission update
As the Central Government has already announced the 8th Pay Commission, employees are waiting for the road map when it will be implemented. As the term of the current 7th Pay Commission is about to end by 31 December this year, the new 8th Pay Commission is expected to be implemented from January 1, 2026. However, speculation prevails that it may be delayed and probably will take longer with the expectation of January 1, 2026.
The Union Cabinet led by Prime Minister Narendra Modi approved the 8th Pay Commission on January 16, 2025 for amending the salary and pension of central government employees. Reference (TOF) and members along with members have not yet announced the terms.
“The 8th Pay Commission Implementation Process will follow the expiry of the duration of the 7th Pay Commission in 2026,” Rohitashv Sinha, Partner, King Stub and Kasiva, advocates and lawyers said, according to one. Atte Report.
He said that the Pay Commissions have become a regular 10 -year process to evaluate salary structure for central government employees.
Sinha, according to the report, the 8th Pay Commission has to face less probability of implementation from January 1, 2026. However, the date of implementation of the 7th Pay Commission in 2016 is in such a way that the 8th Pay Commission recommendations will be likely in 2026. ,
