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7th Pay Commission: Central government employees are eagerly waiting for the announcement of Dearness Allowance (DA) in October 2024. Although no official information has been given yet, it is expected that the government will announce 3% to 4% DA hike before Diwali. This increase will be considered effective from July 1, 2024, due to which the salaries of the employees will increase. Besides, the arrears of DA applicable from July will also come with the salary.
How much will the salary increase?
If the basic salary of an employee is ₹ 18,000 per month, then a 3% increase will increase his salary by ₹ 540 every month. If DA increases by 4%, the salary will increase by ₹720 every month. For example, if someone's total salary is ₹ 30,000 and out of which ₹ 18,000 is basic pay, then at the current 50% DA, he gets ₹ 9,000 as dearness allowance. After 3% increase it will become ₹9,540 and after 4% increase it will become ₹9,720.
DA and DR: what's the difference?
DA is given to government employees while DR i.e. dearness relief is added to the pension of pensioners. Both are revised twice a year – in January and July. However, whenever the government announces it, it is considered applicable from January and July only. This time, more than one crore government employees and pensioners will benefit from the increase in DA and DR.
How is DA determined?
The increase in dearness allowance is announced on the basis of All India Consumer Price Index (AICPI). The central government revises DA based on the average of the last 12 months, which is usually announced in March and September.
8th Pay Commission: Expectations of employees increased
The recommendations of the Seventh Pay Commission came into effect from January 2016 and are now completing 10 years. Although there has been no official announcement of the 8th Pay Commission, employees are expecting its formation soon. According to reports, with the implementation of the 8th Pay Commission, the minimum salary may increase to Rs 34,560, while the pension may also increase to Rs 17,280. The government has not yet taken any decision on the 8th Pay Commission, but employees are hopeful that it will be announced soon.