7th Pay Commission: Latest DA hike updates for central government employees

Central government employees will receive a DA hike in the new year. Do you know the percentage of the DA increase? The notion that employee DA increases are arbitrary is incorrect. DA increases must follow a specific procedure.

Following this procedure, central government employees are set to receive increased salaries in the new year. The recommendations of the 7th Central Pay Commission were implemented by the government on January 1, 2016.

The dearness allowance for central government employees is calculated based on the average of the All India Consumer Price Index.

The formula for DA increase is: (Average of All India Consumer Price Index for the last 12 months (Base Year - 2001 = 100) - 115.76 / 115.76 X 100)

A Financial Express report states that the All India Consumer Price Index has increased to 144.5 as of last October. November and December data are yet to be released. However, the report claims that the AICPI may increase to 145.3 in these two months.

If this happens, the DA of central government employees may increase by 3%, bringing the total DA to 56%.

The DA of central government employees will increase accordingly. Employees are set to receive increased salaries in the new year.