DA hike | Salary may increase up to Rs 20,000 early next year

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Central government employees are likely to get a 3 percent dearness allowance (DA) hike in early 2022 under the 7th Pay Commission, reports said. The salary push due to this hike could reach up to Rs 20,000 in the New Year, as per a News18 report.

Reports of this additional 3 percent hike have not yet been confirmed by the government and there been no official statement in regards to its implementation, the publication added.

DA, the cost-of-living adjustment allowance paid to public sector employees and pensioners, is usually raised twice a year in January and July. It consists of a chunk of the gross salary and is given to offset inflation impact. Besides India, Bangladesh and Pakistan also offer DA.

In line with the hikes given in July and October 2021, which came after a long freeze due to the COVID-19 pandemic, 47.14 lakh central government employees and 68.62 lakh pensioners are paid 31 percent DA (from 3 percent). In July 2021, the government also restored and hiked dearness relief (DR) from 17 percent to 28 percent. These hikes compensated for the freeze in January and July 2020 and January 2021 – without arrears.

Reports also noted that the Centre is holding discussions on raising the fitment factor by 3.68 percent, which could also raise salaries. The last hike in 2016 pushed basic up from Rs 6,000 to Rs 18,000. This hike, if it goes through, could further raise salaries by Rs 8,000 taking basic to Rs 26,000 for public sector employees.