In what could be good news under the 7th Pay Commission, the dearness allowance (DA) of Central government employees could further increase in the month of July 2022. With the hike in the DA, the monthly salaries of government employees will also increase. According to media reports, Central government employees could receive the good news related to the dearness allowance hike by May 31, 2022. However, the central government is yet to release an update on the same.

For the uninitiated, DA or dearness allowance is a major component in the salary of government employees. The salary component is provided to the government employees to cope up with the impact of rising inflation.

According to the rules for the 7th Pay Commission, the dearness allowance (DA) is revised by the government two times a year. The first DA hike in a year usually comes in the month of January and the second one is announced in the month of July.

The hike percentage depends on the inflation rates. AICPI (All India Consumer Price Index is usually the reference based on which the central government decided the DA hike percentage.

In the first hike in 2022, the government increased the DA of its employees by 3 per cent to 34 per cent. With the last DA and DR revision, the salaries of 47.68 lakh Central government employees and pensions of 68.62 lakh pensioners had received a massive boost.

In December 2021, AICPI stood at 125.4. It declined by 0.3 points to 125.1 in the month of January 2022. Further, in the month of February 2022, AICPI decreased by 0.1 points to 125. However, in the month of March 2022, it increased by 1 point to reach again to 125.1.

According to reports, if the AICPI remains above 126, the government could increase the DA by a whopping 4 per cent. If this happens, the DA of Central government employees will increase to 38 per cent.