Mumbai, September 15: The Centre is likely to announce a hike in Dearness Allowance (DA) and Dearness Relief (DR) soon for government employees. The Central government will increase the DA and DR after taking into consideration the recommendations of the 7th Pay Commission. According to reports, the Centre will increase the DA and DR hike by 4 percent, however, there is no official confirmation about the same.

Under the 7th Pay Commission recommendation, the Centre will increase the DA and DR hike for central government employees and pensioners. If reports are to be believed, the government is likely to take a decision on the DA and DR hike during the Union Cabinet meeting which will be led by PM Narendra Modi on September 28. 7th Pay Commission News Today: When Will Central Govt Announce DA Hike? Know the Latest Update Here.

On the 7th Pay Commission recommendations, the Dearness Allowance and Dearness Relief are hiked twice every year. It is increased in January the first time while the second hike is made around July. Reports also suggest that the DA and DR hike file has been submitted to the Union Cabinet, however, final approval is awaited. If the Centre approves a 4 percent hike, then the DA and DR hike will stand at 38 percent.

Dearness Allowance/ Dearness Relief Hike Calculation:

As per the calculations, if the basic salary or pension of a government employee is Rs 25,000 then the DA/DR amount will be Rs 8500 as per the 34 percent hike. However, if the DA is increased to 38 percent then the DA/DR will be Rs 9500 which means employees' salaries will increase by Rs 1000. Similarly, if the basic salary/pension is Rs 35,000, then the DA/DR at a 34 percent hike will be Rs 11,900. If the DA/DR is increased by 4 percent from 34 percent to 38 percent then DA/DR will be Rs 13,300. This means government employees will receive a salary of Rs 1400.

Currently, central government employees are receiving a DA of 34 percent which was increased in March 2022. Before the March 2022 DA hike, the government employees were receiving a DA of 31 percent under the 7th Pay Commission recommendations.

(The above story first appeared on LatestLY on Sep 15, 2022 05:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).