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7th Pay Commission Update: Central Government Employees to Receive 4% DA Hike

7th Pay Commission Update: Central Government Employees to Receive 4% DA Hike

In a significant move, the Union Cabinet has given the green light to a 4% increase in dearness allowance (DA) for central government employees, marking a substantial boost in their financial benefits. This latest decision comes as a relief to employees amidst economic uncertainties and rising inflation rates.

The recent approval by the Cabinet entails a 4% hike in dearness allowance for central government employees, bringing the total to 50%. This decision reflects the government's commitment to addressing the financial needs of its workforce and ensuring their well-being.

Key Highlights:
  • The 4% hike in dearness allowance is in line with the recommendations of the 7th Pay Commission.
  • Dearness allowance is adjusted based on the Consumer Price Index (CPI) data for industrial workers, calculated monthly by the Labour Bureau.
  • The formula for DA calculation follows a specific methodology, ensuring fair adjustments in response to inflationary pressures.
  • The current 12-month average CPI-IW data stands at 392.83, resulting in a DA of 50.26% of the basic pay.
  • The hike in DA will be applicable retrospectively from January 1, 2024, providing employees with arrears for the previous months.

Implications for Employees and Pensioners:
  • Central government employees and pensioners will benefit from the increase in dearness allowance, enhancing their overall compensation packages.
  • The hike in DA aims to mitigate the impact of inflation on employees' purchasing power, providing them with greater financial stability.
  • Alongside the DA hike, employees can also anticipate revisions in other allowances such as House Rent Allowance (HRA) and gratuity benefits.


The approval of a 4% dearness allowance hike by the Union Cabinet is a significant development for central government employees, offering them much-needed financial relief and stability. This decision underscores the government's commitment to prioritizing the welfare of its workforce and ensuring equitable compensation in light of economic challenges.

As employees anticipate the implementation of the DA hike and associated benefits, the Cabinet's decision is poised to have a positive impact on the livelihoods of thousands of government employees and pensioners across the country.

Stay tuned for further updates and announcements regarding the implementation of the dearness allowance hike and other related benefits for central government employees.

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