Latest 7th Pay Commission update: DA-DR for central government employees and pensioners may increase up to 60%. Know the details and impact on your salary and pension.
The Central Government presents employees with DA Hikes twice a year, in January and July, as part of the 7th Pay Commission. But only a few months later is it announced. Government workers and retirees are also anticipating the July hike in Dearness Allowance and Dearness Relief this time around.
This time, government employees and pensioners might receive a present of a 3–4% boost in DA and DR, which will take effect on July 1st, according to AICPI-IW data. Since the higher DA and DR are frequently disclosed starting in July, this rise could be announced in September or October.
This number will determine the DA rise – 7th Pay Commission
The All India Consumer Price Index is used to calculate the dearness allowance (AICPI-IW). By May 2025, this index had risen from 143 in March to 144. There is a chance of a 3% increase if things keep going this way.
How will 60 percent of the dearness allowance be reached?
The dearness allowance rates have steadily increased since the Seventh Pay Commission was put into effect. By January 2025, the dearness allowance has increased from 0% in 2016 to 55%. This percentage can rise to 58% with a potential 3% gain in July. If there is even a 2% increase after the next review in January 2026, the dearness allowance will reach 60%.
When the 8th Pay Commission is put into effect, what will happen?
January 2026 is when the 8th Pay Commission can go into effect. Following that, the basic wage may contain up to 60% of the dearness allowance. This is a typical procedure during the Pay Commission, when the dearness allowance is calculated starting at 0 and the wage structure is updated.
Read More | 8th Pay Commission Update: What Central Employees Must Know Now
A couple more months will have to pass – 7th Pay Commission
Following cabinet agreement, the central government will make the ultimate decision about the dearness allowance hike. For the official announcement, workers and pensioners will need to wait a few more months. The money for the increased DA will be given with the following month’s income, adding it to the month of July, and this increase can be declared in September or October.