7th Pay Commission: DA hike is over 17 per cent of basic salary

New Delhi, Mar 14: There was some good news relating to the 7th Pay Commission.
A decision was taken to increase the the Dearness Allowance of Central Government employees by 4 per cent. The decision was taken by the Union Cabinet.

The 4 per cent hike in the DA is being rolled out for the period January 2020 to June 2020. This is based on the 3 per cent spike in the inflation figures between July 2019 and June 2020.

The increase of 4 per cent DA is over the existing 17 per cent of their basic salary. The hike would be effective from January 1 2020 and will benefit nearly 50 lakh employees and 65 lakh pensioners.

Their salaries could increase in the range of Rs 720 and Rs 10,000. The hike in the salaries is dependant on the pay drawn at the various levels. The DA hike is announced twice a year. The announcement could be made between January 2020 and June 2020.

The DA hike is announced on the basis of inflation in the previous half of the year. The DA hike is announced on the basis of the inflation from July to December in the previous year and January to June in the same year.

The increase in DA was done with the formula that was prescribed by the 7th Pay Commission.