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7th Pay Commission: Dearness Allowance For Central Govt Employees Likely to Increase by 4%
The next Dearness Allowance (DA) hike for central government employees is expected to be announced in September or October. The Centre had previously hiked the DA for employees and Dearness Relief for pensioners in March. Following the recent increase in DA by various state governments, it is anticipated that the Central Government will also raise the DA for its employees by 4 percent.
The possibility of this hike has increased after the AICPI Index for June 2023 was released. The index shows a significant jump, with June’s index at 136.4 points compared to May’s 134.7 points, resulting in a total increase of 1.7 points. The AICPI Index is used to determine the percentage of the DA hike for government employees.
It should be noted that the DA is hiked twice a year, in January and July. The last hike, announced in March 2023 and effective from January 1, 2023, increased the DA by 4 percent to 42 percent. The next DA hike, expected to be announced in September or October, is likely to raise the DA to 46 percent.
The DA hike will benefit approximately 47.58 lakh central government employees and 69.76 lakh pensioners. Additionally, recent reports suggest that the DA may increase to 46 percent for central government employees. An official announcement regarding this is expected in September.
In March 2023, the Centre hiked the DA for central government employees and Dearness Relief for pensioners, increasing it by 4 percent from the existing rate of 38 percent of the Basic Pay/Pension. This move aimed to compensate for rising prices.
Several states, including Madhya Pradesh, Karnataka, and Odisha, have also increased the DA for their employees and pensioners. Madhya Pradesh increased the DA by 4 percent, while Odisha and Karnataka increased it by the same percentage with a retrospective effect from January 1, 2023.
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