7th Pay Commission DA Hike: Here’s How Much Salary Will Increase for Central Govt Employees After 2% Dearness Allowance Hike
Mumbai, March 28: Are you also wondering how much your salary will increase after the latest 2% DA hike under the 7th Pay Commission? The Union Cabinet, chaired by PM Narendra Modi on Friday, March 28, approved the hike, raising the Dearness Allowance (DA) from 53% to 55% of the basic pay. This revision, effective from January 1, 2025, will benefit over one crore central government employees and pensioners. Arrears for the January- March period will be included in the April salary.
Let’s know how much this 2% increase will impact your monthly earnings. The salary hike depends on the employee’s basic pay, with different increments across various levels. Additionally, pensioners will also see a corresponding rise in their Dearness Relief (DR). Here’s a breakdown of how much employees and pensioners will gain from this latest revision. 7th Pay Commission DA Hike: Union Cabinet Approves 2% Increase in DA, DR for Central Government Employees and Pensioners.
How Much Will Salary Increase?
With the 2% DA hike, central government employees will see an increase in their monthly salaries based on their basic pay. For instance, an entry-level employee with a basic salary of INR 18,000 will get an additional INR 360 per month, resulting in an annual increment of INR 4,320. Similarly, an employee with a basic pay of INR 30,000 will receive INR 600 more every month, totaling INR 7,200 annually. Pensioners will also benefit, as Dearness Relief (DR) has increased by the same percentage. A pensioner with a basic pension of INR 9,000 will now get INR 180 more per month, amounting to INR 2,160 annually. 7th Pay Commission: Why DA Hike Announcement For Central Govt Employees Is Getting Delayed? Know When Will It Be Announced.
The Dearness Allowance (DA) and Dearness Relief (DR) hikes are based on the All India Consumer Price Index (AICPI), which reflects inflation trends. The formula used to calculate DA is:
DA Percentage = ((12-month average AICPI – 115.76) / 115.76) × 100
For central public sector employees, the calculation considers the AICPI over three months instead of 12. This ensures that salary revisions are aligned with changes in the cost of living. While the DA revision occurs twice a year (January and July), the announcements usually come in March and September.
7th Pay Commission: The Previous DA Hike
Before this, the last DA hike was announced in October 2024, increasing DA from 50% to 53% with effect from July 1, 2024. At that time, employees and pensioners received a 3% increment. The government reviews DA and DR hikes periodically to help employees manage inflation. However, with the 8th Pay Commission expected to be implemented in 2026-27, future salary structures may undergo significant revisions.
(The above story first appeared on Today News 24 on Mar 28, 2025 06:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
