7th Pay Commission: Following the recent increase in dearness allowance, government employees of the central administration are anticipating another salary increase from July 1.
According to sources, central government employees may receive an additional DA hike in July of this year. T
he Seventh Pay Commission has made it mandatory to raise the dearness allowance twice a year, in January and July.
However, there has been no official statement released yet regarding the anticipated salary hike.
The dearness allowance was last increased by 4% on January 1, 2023, bringing the total to 42%.
Before this, the DA had been raised by 4% in September 2022, effective from July 2022.
As per a report by Zee News, the DA is anticipated to increase by an additional 3-4% in the near future, becoming effective from July.
This hike in DA is expected to benefit over 47.58 lakh central government employees and 69.76 lakh pensioners.
Here’s How DA Hike is Calculated?
The dearness allowance is determined by the monthly release of the CPI-IW index by the Labor Bureau, which operates under the Ministry of Labour.
The Centre decides whether or not to raise the DA based on the data provided by the CPI-IW index.
This year, there has been a decline in the All India Consumer Price Index (AICPI) in February, but it has since shown an upward trend in March.
This has led to speculation that the DA may be increased in the near future.
It should be noted by government employees that the DA and DR are revised twice a year, in January and July.
The dearness allowance is granted to government employees, while dearness relief is provided to pensioners.
Importantly, the DA is granted to employees based on their basic pay, while the DR is given on the basis of their basic pension.
States Hike DA For Govt Employees
Several states, such as Jharkhand, Haryana, and Himachal Pradesh, have recently increased the DA for their respective state government employees.
The Jharkhand government increased the dearness allowance for its employees from 34% to 42%, in accordance with the recommended formula based on the 7th Central Pay Commission.
