7th Pay Commission latest news: Good news regarding Dearness Allowance benefit appears to be just around the corner for lakhs of central government employees. With the DA figure currently at 42 percent, it is widely expected that a 3 percent hike will be granted by the Centre. According to latest reports, this figure could be more than the expected DA hike.
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The Union Cabinet is expected to approve the next round of DA hike this month. The employees’ side is expecting a 3 percent hike with retail inflation in the country hitting a 15-month-high level in July.
“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,” All India Railwaymen Federation General Secretary Shiva Gopal Mishra had told PTI last month.
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Recent media reports claim that due to the current inflation rate, the DA hike this time will be similar to last time when central employees received a 4 percent hike earlier this year. This would mean that DA would reach 46 percent with the second hike of 2023.
On the timeline front, while there is no official confirmation, reports claim that the DA hike could be rubber stamped at the next Cabinet meeting which is likely to happen after the G20 Summit 2023 in September in the national capital.
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While central government employees will receive DA, pensioners receive Dearness Relief (DR). The next round of DA hike, whenever announced, will be effective from July 1, 2023. The hike will be crucial to offset the impact of inflation for central employees.
