7th Pay Commission Big Update: Centre Likely To Announce DA Hike | Details Here

7th Pay Commission Big Update: The Modi government is likely to announce the DA (Dearness Allowance) Hike for all the Central government employers and pensioners soon. According to the latest reports, the government is mulling to announce the hike in DA between Navratri and Diwali, which will be effective from July 1, 2023. While earlier reports have claimed that central employees’ DA will be hiked by 3 percent, the figure could rise further.

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According to the Economic Times report, the formula for DA calculation based on the latest Consumer Price Index for Industrial Workers (CPI-IW), a 4 percent hike is likely for central government employees.

This comes as a big boost as employees have been expecting a 3 percent hike to take the DA figure to 45 percent. The hike in dearness allowance and dearness relief for employees and pensioners are worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the

Labour Bureau every month. Notably, this Labour Bureau is a wing of the Labour Ministry.

Last month, All India Railwaymen Federation General Secretary Shiva Gopal Mishra told PTI that the Federation is demanding a four percentage point hike in dearness allowance. But, the dearness allowance hike works out to be a little over three percentage points. “DA is likely to be increased by three percentage points to 45 per cent.”

Formula for the Calculation of DA

  • In 2006, the central government had revised the formula to calculate the DA and DR for central government employees and pensioners.
  • Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
  • For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.

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