7th Pay Commission latest update:Centre To Increase DA For Over One Crore Govt Employees And Pensioners

 7th Pay Commission latest update:Centre To Increase DA For Over One Crore Govt Employees And Pensioners 


7th Pay Commission latest update: The Modi government is likely to hike the dearness allowance (DA) for its over one crore employees and pensioners by four percentage points to 42 per cent from existing 38 per cent as per the agreed formula for the purpose.

DA is crucial to the lakhs of central government employees and lakhs more pensioners amid rising prices. Earlier, the government had hiked DA by the same figure in the second increment of 2022 on September 28, 2022. That hike was effective for central employees from July 1, 2022. It took the DA figure to 38 percent from the earlier 34 percent. In the January 2022 hike, the DA was increased by 3 percent from 31 percent.

The January 2023 DA hike is likely to be higher than the January 2022 DA hike; the expectation was backed by Shiva Gopal Mishra, General Secretary, All India Railwaymen Federation. He has revealed that the DA hike as per the Consumer Price Index for Industrial Workers (CPI-IW) for December 2022 brings about the DA hike figure to 4.23% as per the agreed formula.

With decimal points omitted by the government in the final announcement figure, it is likely to be a 4% hike. CPI-IW is released by the Labour Bureau for every month around the end of next month. It forms the basis on which calculation for central government employees’ DA is made.


“The CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent,” Shiva Gopal Mishra said

With the numbers out and the final DA hike all but confirmed, the Finance Ministry’s Department of Expenditure will formulate a proposal for the hike. The proposal will also consist of details on the revenue implication. This proposal will then go before the Union Cabinet for the DA hike to be approved. As per reports, the likely 4% hike will be announced around Holi in March. The hike will be effective for central government employees from January 1, 2023.

(Inputs from PTI)

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