7th Pay commission DA Hike: The Modi government at the Center has recently announced an additional subsidy of Rs 100 to the beneficiaries of the Ujjwala scheme. Before the festival, the central government has given good news to the general public.
Now central employees and pensioners are also waiting for their DA to increase. There are more than one crore central employees and pensioners in the country. The second increase of DA is to happen before the festival and it will be considered effective from July 1, 2023.
Government may increase DA after October 15
According to media reports, this time the Union Cabinet may announce increase in DA and DR of employees during Navratri. If we look at the records of the last few years, the government has announced to increase DA and DR during Navratri. This time also it is expected that the government can announce increase in DA of government employees any day after October 15.
DA may increase to 46 percent
There may be a 4 percent increase for central government employees as per the DA calculation formula based on the new Consumer Price Index for Industrial Labor (CPI-IW). After this increase, dearness allowance will reach 46 percent. DA is given to government employees, while Dearness Relief (DR) is given to pensioners. DA and DR increase twice a year – January and July. At present, more than one crore central government employees and pensioners are getting 42 percent dearness allowance. In the last increase in March 2023, DA was increased by 4 percent to 42 percent. Considering the current inflation rate, the next DA hike is expected to be 4 percent.
These states have increased DA
Recently, many state governments like Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh have increased the dearness allowance for their state government employees.
How does the government decide on DA hike?
The DA and DR hike is decided on the basis of 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. Most of the governments have announced increase in DA in March and September-October. This is expected to happen this time too.
