7th Pay Commission latest news: Central government can once again give great news to government employees
7th Pay Commission latest news: The central government can once again give great news to the government employees. The government can once again increase the Dearness Allowance (DA). According to media reports, after two consecutive months of decline in the AICPI Index, a jump of 1 point has been seen in March 2022. This is the reason that once again the hope of increasing DA has been awakened. Once again dearness allowance may increase by 3 per cent. However, the numbers for April, May and June are yet to come, only after which the final decision will be taken. If it rises even further, another hike can be seen in DA.
AICPI numbers jump in March
Under the 7th Pay Commission, dearness allowance is given to central employees twice. The first is given in the month of January and the second in July. The government had recently increased the DA by 3 per cent. If dearness allowance is revised in July, then it can again see an increase of 3 per cent. Meanwhile, if inflation appears to have increased in the All India Consumer Price Index, then the government can increase DA in July. There was a slight decline in January and February. In January, the data had come down to 125.1, which had come down to 125 in February. Now it has increased to 126 in March. If it increases further in the coming months, then the DA is sure to increase.
DA Hike: What to expect this time?
Now there are reports that the Center may again increase the DA by 3 percent. Presently DA is 34 per cent. If it is increased by 3 per cent, then it can be 37 per cent. This decision will benefit more than 50 lakh government employees and 65 lakh pensioners.
A look at past DA hikes
In July, 2021, the Center increased dearness allowance and dearness relief from 17 per cent to 28 per cent. The central government had stopped DA for almost one and a half years due to the coronavirus pandemic. DA for central government employees increased to 31 per cent in October 2021 with a further hike of 3 per cent. Now it has been increased from 3 per cent to 34 per cent.
How is DA calculated?
Dearness Allowance is a component of the salaries of government employees and pensioners, aimed at mitigating the effects of inflation. The effective salary of government employees is revised from time to time to deal with the rising inflation rate. DA is revised twice every year – in January and July. Since DA is related to cost of living, it varies from employee to employee. It depends on whether they live in an urban area, work in a semi-urban area or a rural area.
