7th Pay Commission DA Hike: DA i.e. dearness allowance for central employees and pensioners is decided on the basis of the updated CPI-IW issued by the Labor Bureau. The CPI-IW in July 2023 increased by 3.3 points to 139.7. After one month, i.e. in August, this figure had increased to 2.42 percent. An increase of 0.90 percent was seen during the same month a year ago.
7th Pay Commission: There is a big good news for central employees. The wait of crores of central employees is going to end soon. According to media reports, DA hike can be announced this month in September 2023. This DA hike will be effective from 1 July 2023 only. After the latest hike, central employees will get the benefit of DA at the rate of 45 percent. Please tell that the government hikes DA twice a year.
DA hike happens on this basis
DA i.e. dearness allowance for central employees and pensioners is decided on the basis of updated CPI-IW issued by the Labor Bureau. The CPI-IW in July 2023 increased by 3.3 points to 139.7. After one month, i.e. in August, this figure had increased to 2.42 percent. During the same month a year ago, an increase of 0.90 percent was seen.
Who gets the benefit of DA Hike
Let us tell you that the benefit of DA Hike is given to central employees. While pensioners get the benefit of DR hike. DA/DR hike is done in the month of January and July. According to a News 18 report, last month, Shiv Gopal Mishra, general secretary of All India Railwaymen Federation, had told PTI that the federation is demanding a four percentage point increase in dearness allowance. But, the increase in dearness allowance will be a little more than three percentage points. DA is likely to be increased by three percentage points to 45 percent. He also said that the Department of Expenditure of the Finance Ministry will prepare a proposal to increase DA as per its revenue and will place the proposal before the Union Cabinet for approval.
Currently, so many crore employees are getting the benefit of DA hike.
At present, more than one crore central government employees and pensioners are getting 42 per cent dearness allowance. In the last hike in March 2023, DA was raised by 4 per cent to 42 per cent. At the same time, according to various media reports, considering the current inflation rate, the next DA hike is expected to be 4 percent. Recently, several state governments including Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh increased the DA for their state government employees.
How does the government decide on DA hike?
The DA and DR hike is decided based on the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) for the period ending June 2022. However, the Central Government revises the allowances every year on 1 January and 1 July. In 2006, the Central Government updated the formula for calculating DA and DR for Central Government employees and pensioners.
