New Delhi, August 18: Dearness allowance or DA of central government employees, who get paid under the 7th Pay Commission, is usually hiked twice in a year - in January and July. While the Centre has approved hike in DA, supposed to be released for January-June period, with effect from July 1, it is yet to announce increment for July-December period. According to a report, another hike in DA could be announced in mid-September. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.

The Centre announced a hike of 4 percent in DA in January this year. However, this hike came into effect from July 1. The increment had been put on hold along with two pervious increments announced in 2020 due to the coronavirus outbreak. From July 1, central government employees get 28 percent of their basic pay as DA under the 7th Pay Commission. Now, central government employees are waiting for another hike in DA. 7th Pay Commission Latest News Today: HRA To Be Increased After Hike in DA, Here's How Much Raise Is Expected.

According to a recent report by DNA, the Centre is likely to announce a hike of 3 percent in DA soon for July-December period. If this happens, central government employees will get 31 percent of their basic pay as dearness allowance, under the 7th Pay Commission. The report cited the data released by All India Consumer Price Index (AICPI) from January to May to state that a 3 percent hike in DA is more likely. The AICPI touched 120.6 following an increase of 0.5 points in the index for May 2021. The Ministry of Labour is yet to release the data for June.

Here's How Much Your Salary Will Increase If DA Hiked to 31%

  • Basic salary of the employee Rs 18,000

  • New Dearness Allowance (31%) Rs 5580/month

  • Existing Dearness Allowance (28%) Rs 5040/month

  • Calculate the difference: 5580-5040 = Rs 540/month

  • Increase in annual salary 540X12 = Rs 6,480

If the AICPI touches 130 in June, a hike of 4 percent in DA could be announced. But it is impossible for AICPI to jump 10 points in a month, hence, a 3 percent hike in DA is more likely, the report added. According to a latest report by Zeebiz, the Centre is likely to announce 3 percent hike in DA in September.

(The above story first appeared on LatestLY on Aug 18, 2021 12:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).