7th Pay Commission: As per the recently released AICPI-IW data for June 2023, the dearness allowance hike for government employees works out to be a little over 3 percentage points.
New Delhi: As the time for the dearness allowance hike is getting near, lakhs of central government employees are eagerly waiting for an announcement from the Centre. Even as the exact date of the announcement is not officially made as yet, various reports claim that the DA hike announcement will be made anytime in September 2023.
How Much DA Hike Will Be Announced?
As the retail inflation in the country has crossed a 15-month-high level in July, the Central government this time is expected to increase the dearness allowance (DA) by 3% points to 45%. Once announced, the new DA hike will be effective from July 1, 2023.
Why Only 3% Hike in DA/DR Expected?
According to the AICPI-IW data for June 2023, the dearness allowance hike works out to be a little over 3 percentage points. However, the Centre never considers hiking DA/DR above the decimal point. Hence, it is expected that the Centre could hike DA by 3% this time.
How Is DA Hike Calculated?
The dearness allowance for Central government employees and DR for pensioners are calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month.
Earlier, All India Railwaymen Federation General Secretary Shiva Gopal Mishra said that the government employees this time are demanding 4% hike in dearness allowance keeping in mind the rising inflation in the country.
“The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percentage point hike in dearness allowance. But the dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by three percentage points to 45 per cent,” Shiva Gopal Mishra was quoted as saying by PTI.
Mishra further added that the expenditure department of the finance ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval, and then the DA hike announcement will be made.
How Much DA Is Being Given Now?
Right now, over one crore central government employees and pensioners are getting a 42% dearness allowance. Dearness Allowance was hiked last time in March 2023, and it was increased by 4% to 42%.
It should be noted that the DA/DR is provided as a relief measure to cut down the impact of inflation on the value of the in-hand salary/pension provided to Government employees and pensioners. The Centre makes the DA/DR hike announcement based on the formula recommended by the 7th Pay Commission.
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