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Unveiling the Latest Update: 7th Pay Commission DA Hike for Central Government Workers

Exciting News Coming Soon for Central Government Employees with 7th Pay Commission DA Hike

Central government employees are on the verge of receiving great news from the government. This news is connected to the DA hike as part of the 7th Pay Commission. Reports in the media suggest that there is anticipation of an announcement regarding the Dearness Allowance (DA) increase in the month of September due to inflation. However, an official announcement in this regard is yet to be made. There is hope for a 3% increment in the Dearness Allowance this time. Following this, the existing 42% DA is expected to rise to 45%.

Calculation Based on AICPI Index

The calculation of Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners is determined each month based on the AICPI index issued by the Labor Ministry.

Hope for a 3% Increment

Recent data shows that the June Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Ministry has increased by 3%. The government has not yet considered a double-digit point. Shiv Gopal Mishra, the General Secretary of the All India Railwaymen Federation, has also requested a 4% hike in DA from our side. However, there is a possibility that the government might increase it by 3%, making it 45%.

Implementation from July 1st

If the government decides to increase the DA and DR in September, it will be implemented from July 1st. The Finance Ministry’s expenditure department will prepare a proposal for the DA increment in consultation with the Revenue Department. Once approved by the Cabinet, the proposal will come into effect from July 1st, 2023. Currently, there are more than a crore employees and pensioners under the Central Government. They are receiving DA/DR at the rate of 42% of the basic pay/pension.

Prior to this, an increment was made on March 24, 2023, for DA. This change came into effect from January 1, 2023, increasing the DA from 4% to 42%.

In conclusion, the anticipation of a significant DA hike for central government employees brings hope and excitement as they await official announcements from the government. The calculation based on the AICPI index will play a crucial role in determining these increments.