After the recent hike in dearness allowance, now the central government employees are eagerly waiting for another hike in their salary from next July. If the news is to be believed then the Central Government employees are going to get an increase in DA again in July this year.
The pay hike mandates a hike in Dearness Allowance twice a year, during January and July respectively, as per the Seventh Pay Commission. However, an official announcement has not been made on this yet.
The previous dearness allowance was increased by 4 per cent, which became effective from January 1, 2023, and DA was increased to 42 per cent after the 4 per cent increase. Earlier in September 2022, DA was increased by 4 percent, which became effective from July 2022. It is now reported that another 3-4 per cent hike in DA is expected and will be effective from July. The hike in DA is going to benefit over 47.58 lakh central government employees and 69.76 lakh pensioners.
How is DA calculated?
Dearness Allowance is calculated on the basis of CPI-IW index, which is released every month by the Labor Bureau, a wing of the Ministry of Labour. Based on the CPI-IW index data, the Center decides whether the DA will increase or not.
This year the All India Consumer Price Index (AICPI) had declined during February, but has now shown an upward trend during March. Due to this, speculations are being made that there may be an increase in DA soon.
Government employees should note that DA and DR are revised twice a year. Once in January and once in July. While dearness allowance is given to government employees, dearness relief is given to pensioners. Significantly, DA is given to the employees on the basis of basic salary, while DR is given on the basis of basic pension.
States increased DA for government employees
Recently many states including Jharkhand, Haryana and Himachal Pradesh have increased DA for their respective state government employees. The Jharkhand government has increased the dearness allowance of its employees from 34 percent to 42 percent. The DA was increased as per the approved formula based on the recommendations of the 7th Central Pay Commission.
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