7th Pay Commission update: Will govt employees get Holi surprise?

7th Pay Commission: Central government employees may soon receive good news. The government may soon announce an increase in Dearness Allowance (DA), which will increase salaries. This increase will be under the 7th Pay Commission, and crores of employees and pensioners will benefit from it. It is believed that the announcement may be released in March, coinciding with the Holi festival. However, no official announcement has been made regarding this so far.

The government increases DA twice a year, once in January and again in July. The last time, in October 2024, employees received a 3% increase, which increased their dearness allowance from 50% to 53%. Now another increase is expected in March 2025, which will be effective from January 1, 2025.

What is possible?

If the government increases DA by 3%, the salary of an employee with a basic salary of Rs. 18,000 will increase by Rs. 540 per month. On the other hand, if the government increases it by 4%, this increase will be up to Rs. 720 per month.

If the government announces the dearness allowance hike in March, it will be a big gift for government employees before Holi. Now everyone's eyes are on the government's decision.
 

Announcement will be released in March and September

Dearness allowance is calculated based on the All India Consumer Price Index (AICPI). The government changes the DA rate based on the average AICPI of the last 12 months. However, its official announcement is usually released in March and September.

The government has approved the 8th Pay Commission, but its terms and who the members are have not yet been decided. The term of the 7th Pay Commission is until December 31, 2025, and it is believed that the 8th Pay Commission may be implemented from January 1, 2026. However, some reports say it may take longer to implement it.