7th Pay Commission: The central government may give a major gift to its employees and pensioners this Diwali. The government could announce a 3% increase in the Dearness Allowance (DA). If this happens, the current DA of 55% will increase to 58%. This will provide relief to millions of government employees and pensioners.
7th Pay Commission: The central government may give its employees and pensioners a major gift this Diwali. The government could announce a 3% increase in the Dearness Allowance (DA). If this happens, the current DA of 55% will increase to 58%. This will provide relief to millions of government employees and pensioners.
DA revision happens twice a year
The central government reviews the Dearness Allowance twice a year.
First, for the period from January to June
Second, for the period from July to December
In March 2025, the government increased the DA by 2% for the period January-June, raising it from 53% to 55%. Now, a 3% increase for the July-December period is under discussion.
What will be the impact of a 3% increase?
The DA is directly linked to the basic salary or pension of the employee or pensioner. If a pensioner’s basic pension is ₹9,000, they currently receive ₹4,950 as DA at 55%. The total pension then becomes ₹13,950. With a 58% DA, the amount would increase to ₹5,220, making the total pension ₹14,220. This means a net benefit of ₹270.
If an employee’s basic salary is ₹18,000, they currently receive ₹9,900 as DA, making their total salary ₹27,900. With a 58% DA, the amount would be ₹10,440, and the total salary would be ₹28,440. This means a net benefit of ₹540.
How is DA calculated?
The Dearness Allowance (DA) is based on the Consumer Price Index for Industrial Workers (CPI-IW). As inflation rises or falls, the DA is adjusted accordingly to maintain the purchasing power of employees and pensioners.
When will the announcement be made?
While the government has not yet made an official announcement, traditionally, such decisions are usually made after Navratri and before Diwali. It is expected that the government will not miss this opportunity to provide this benefit to its employees and pensioners this year as well.
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