7th Pay Commission: The central government may announce a 3 percent increase in dearness allowance (DA) next month. With a 3 percent increase in DA, the total dearness allowance will reach 53 percent. This increase in DA of central employees may happen next month in September. With this increase in September, the arrears of two months of July and August will also be given in the salary.

DA and DR will increase by 3 percent

A DA and DR hike of 3 per cent is likely to be announced in September 2024, which will be effective from July 1, 2024. This hike will take the DA to 53 per cent. DA will not be merged with basic pay even if it exceeds 50 per cent. Instead, other allowances including HRA will be increased when DA crosses 50 per cent. The government had increased HRA when DA increased to 50 per cent in March.

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DA arrears will be available

DA is given to government employees, while DR is given to pensioners. DA and DR increase is applicable twice a year, in January and July. In March 2024, the government increased the dearness allowance by 4 percent to 50 percent of the basic pay. Along with this, dearness relief was also increased by 4 percent.

Will I get 18 months DA arrears?

The government is unlikely to release the 18 months of dearness allowance (DA) and dearness relief (DR) arrears withheld during the COVID-19 pandemic. In the recent monsoon session of Parliament, two members asked the government a question regarding DA arrears. The government was asked whether the government is considering releasing 18 months of dearness allowance or relief of central government employees and pensioners, which was withheld during COVID-19.

In response to this question, Minister of State for Finance Pankaj Chaudhary said no. He said that it was decided to stop three installments of DA and DR to reduce financial pressure during the pandemic. In view of the economic crisis caused by the pandemic in 2020 and the financial needs for the steps taken by the government, it was not considered right to release DA and DR arrears.