7th Pay Commission: Vegetables became costlier due to bad weather, the effect of which was also seen on the inflation rate. Due to increase in inflation, the pressure on the government to increase the dearness allowance has started increasing. The government is expected to increase the Dearness Allowance (DA) by 3 percent to 45 percent. The DA hike is likely to be announced soon, which will be considered applicable from 1 July 2023.
DA may increase by 3 percent
Actually, the DA of central employees is increased twice a year in January and July. The quantum of increase in DA depends on the data of AICPI index released by the Labor Department, which is released every month. But for DA the data is reviewed every 6 months. Based on this data, the first increase occurs in January and the second in July.
DA will increase to 45%
After the release of the figures till June, a 3 percent increase in DA is believed to be fixed. It is believed that the government can announce new DA rates anytime between Raksha Bandhan to Diwali. At present, the DA of central employees is 42%, which is applicable from January to June 2023. The next DA is to be applicable for July to December 2023. This will be the second hike of the year.
DA may increase in September
It is expected that there may be a 3 per cent hike in DA in September, after which the DA of the employees will increase to 45 per cent. It will be implemented from 1 July 2023, in which case arrears of 2 months will also be given. This will benefit 1 crore employee-pensioners. Earlier in March 2023, DA was increased to 42 percent.
According to media reports, the CPI-IW for 2023 was released on July 31, 2023, according to Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation. The employees are demanding a 4 per cent hike in the dearness allowance. But the increase in DA is a little more than 3 per cent. Government will not increase DA in decimal. This can lead to an increase of 3 percent in DA.
