7th Pay Commission : “The Central government employees could expect DA hike only in the third week of September. And this time, the Centre could announce only a 3% hike in dearness allowance as the inflation is steadily coming under control,” a website quoted an official in the Ministry of Finance as saying.
According to the same source, the DA increase will take effect on July 1st.
The government is reportedly planning to boost the dearness allowance (DA) from its current 42 percent to 45 percent in accordance with the formula set forth for that purpose.
On July 31, 2023, the CPI-IW for June 2023 was published. We want the dearness allowance to increase by four percentage points. But the increase in the dearness allowance amounts to just a little bit over three percentage points. Beyond the decimal point increases in DA are not taken into account by the government. Thus, DA is expected to be raised by three percentage points to 45 percent, according to Shiva Gopal Mishra, general secretary of the All India Railwaymen Federation, as quoted by PTI.
He added that the spending division of the Finance Ministry will draft a proposal describing the rise in Dearness Allowance (DA) and its budgetary implications. The Union Cabinet will then be asked to approve this plan.
Both employees and pensioners’ dearness allowances are calculated using the most recent Consumer Price Index for Industrial Workers (CPI-IW), which is released by the Labour Bureau each month.
The most recent DA modification was completed on March 24, 2023, and it took effect on January 1, 2023.
Based on the percentage increase in the 12-month average of the All India Consumer Price Index for the period ending December 2022, the Centre hiked DA by four percentage points to 42 percent.
Employees and pensioners receive the DA as a price-inflation benefit.
Over time, the cost of living rises and is represented in the CPI-IW. Twice a year, the allowance is adjusted periodically.
7th Pay Commission : Centre Will Announce DA Hike For Govt Employees