7th Pay Commission: Dearness Allowance (DA) hike latest news, effective date and details to know
7th Pay Commission Dearness Allowance (DA) Hike Date Latest News: Central Government Employees may get the good news on the dearness allowance hike soon.
7th Pay Commission Dearness Allowance Hike Latest News: Central Government Employees may get the good news on the dearness allowance hike soon. The announcement of the Dearness Relief Hike for Central Government Pensioners is also expected.
According to a report by the news agency PTI, the Central Government is expected to hike dearness allowance (DA) by 4 percentage points to 42%. The existing DA rate is 38% as per the agreed formula.
How DA hike is calculated?
The calculation of the DA hike is done on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW), which is prepared by the Labour Ministry’s Labour Bureau every month.
According to Shiva Gopal Mishra, General Secretary of All India Railwaymen Federation, the CPI-IW for December 2022 was released on January 31, 2023. Mishra told the news agency that the DA hike works out to be 4.23% but the Government doesn’t factor in the DA hike beyond the decimal point. Therefore, it will likely increase the DA by 4% to 42%.
DA Hike Date
The DA/DR hike is usually announced in the months of March and September. While the Finance Ministry is expected to formulate a proposal to hike DA with its revenue implication and put it before the Union Cabinet for approval, the date of the DA hike announcement is not yet final. However, the next DA hike, irrespective of the date it is announced, would likely be effective from January 1, 2023. In case there is a delay in the DA hike announcement then the Government may provide arrears.
Who benefits from the DA hike?
The DA/DR hike benefits around 1 crore Central Government Employees and pensioners.
Last DA Hike
The last hike in DA was announced on September 28, 2022, and was effective from July 1, 2022. The Central Government then increased DA by 4% to 38% based on the percentage increase in the 12 monthly averages of AICPI-1W for the period ending June 2022. CPI-IW reflects the increasing cost of living over a period of time.
How many times DA is hiked in a year?
Generally, DA is revised periodically twice a year. It is provided to employees to compensate for the rising prices. (DNA)
