New Delhi, September 21: The central government is expected to announce a 4% hike in dearness allowance (DA) for its employees by the end of September or early October 2024 on 7th pay commission recommendations. According to reports, the increase will be retroactively effective from July 1, 2024. Last year, the DA hike was announced in the first week of October.

In March 2024, the government had raised DA and dearness relief (DR) by 4% on 7th pay commission recommendations, bringing the total to 50% of basic pay. DA is given to central government employees, while DR is provided to pensioners. Both are revised twice a year, in January and July, with announcements typically made in March and September or October. 7th Pay Commission: DA Likely to Be Hiked by 3% For Central Govt Employees and Pensioners, Know How Much Salary Will Increase.

Despite DA reaching 50%, it will not be merged with basic pay, as per current guidelines. Instead, provisions for increasing other allowances, such as House Rent Allowance (HRA), are in place when DA crosses the 50% threshold. This policy will continue until the formation of the 8th Pay Commission. 7th Pay Commission News Update: DA Hike on Cards for Central Govt Employees, Check Details.

There has been speculation about the formation of the 8th Pay Commission. However, in a written reply to the Rajya Sabha on July 30, 2024, Minister of State for Finance Pankaj Chaudhary clarified that no proposal for the commission is under consideration despite demands from employee unions. The 7th Pay Commission was constituted in February 2014, with its recommendations implemented from January 1, 2016. Historically, pay commissions are formed every 10 years to revise the pay structure of government employees.

The DA and DR hikes are calculated based on the All-India Consumer Price Index for Industrial Workers (CPI-IW).

(The above story first appeared on LatestLY on Sep 21, 2024 07:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).