7th Pay Commission: Central govt employees likely to receive 3% DA hike in September

The Central government employees are keenly waiting for an increase in the dearness allowance (DA), and pensioners are hoping for a rise in dearness relief (DR). Although there has been no official confirmation, media reports suggest that the DA and DR hike is likely to be announced in the first week of September.

The government increases DA and DR twice a year, and announcements are made in the months of March and September. However, the hike is implemented from January and July.

DA hike likely to be 3%

The serving Central government employees are eligible for dearness allowance, while the pensioners get dearness relief.

The revision in DA and DR is based on the Consumer Price Index - Industrial Workers (CPI-IW) with the base year 2016.

The Centre had hiked DA to 50% of basic pay from the earlier rate of 46% effective from January 1, 2024.

With the increase in DA, canteen allowance, deputation allowance, and transport allowance, among others, were also increased by 25%. House Rent Allowance (HRA) was raised from 27%, 19%, and 9% of basic pay to 30%, 20%, and 10%, respectively.

Benefits under gratuity were increased by 25%, with a ceiling of ₹25 lakh, up from the existing ₹20 lakh.