7th Pay Commission 54 Percent

In 2016, the Central Government of India implemented the 7th Pay Commission. This commission provides all central government employees a good increase in payments in the form of dearness allowance (DA).

The 7th Pay Commission has made it mandatory to hike DA twice in a year. The first hike will be applicable from the month of January and the second hike will be applicable from July month.

Pattern Of DA Hike 

For the last few years, the Central government has been increasing the DA of the employees by 4% for each hike.

According to this pattern, the central government employees received 38 percent in 2022, 42 percent in Jan 2023, and 46 percent in July 2023. For this year, the January 2024 hike in DA is 50 percent and if the same follows, for July 2024 it will increase to 54 percent.

Provision Of DA Increment

The 6th Pay commission had no limitation in the increment of DA. But the 7th Pay commission is limiting this increment. According to this limitation, central government employees will not receive DA more than 50 percent.

It is documented in the 7th Pay commission that if the increment reaches 50 percent, then the next DA will start from zero.

54 Percent DA In July 2024 

DA of the employees is prepared according to the all-India CPI index.

An increase in the CPI index will automatically increase the DA. So for the month of July, DA will be prepared according to the all-India CPI index for the month of July.

The CPI index for July will be released by the end of August. So notification regarding the increment will be released by September 2024. As of now, central government employees are receiving an extra half of their payment as DA.

New Increment In DA 

As of now, there is no information regarding the DA of July month. Even if the DA is revised from zero, it will not affect the salary of central government employees.

Their basic payment and 50 percent DA will now be converted as new basic pay. The next DA will be given to them according to their new basic pay.

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