7th Pay Commission: Central Govt likely to hike DA of employees by next month, Here's details
The 7th Pay Commission increased the DA for central government employees to 34 per cent in January, up from 31 per cent previously.
Due to the country's high level of inflation, government employees are likely to receive a dearness allowance (DA) raise, which will be announced at the end of this month. Following media reports, the DA increase will be around 5 per cent, with the All-India Consumer Price Index (AICPI) hovering around 127 points. The DA is updated every year between January and July.
The 7th Pay Commission increased the DA for central government employees to 34 per cent in January, up from 31 per cent previously. It has been updated to reflect the AICPI. In April, retail inflation, as measured by the Consumer Price Index, reached an eight-year high of 7.79 per cent.
After a long period, the Centre increased DA and dearness relief (DR) for central government employees and retirees to 28 per cent and 17 per cent, respectively, in July 2021. Dearness allowance (DA) is paid to government employees, whereas dearness relief is paid to retirees (DR).
In October 2021, central government employees received a 3 per cent increase in dearness allowance. Then, beginning in July 2021, the DA for central government employees increased to 31 per cent. Salaried employees would receive a 34 per cent increase in DA and DR beginning in January 2022, up from the previous rate of 31 per cent.
The AICPI was 125.1 in January, but it had dropped to 125 by February. However, the Index increased by one point in March to 126 points. The AICPI rose to 127.7 points in April. The data for May and June will be thoroughly examined right away. Following media reports, if those months' results remain above 127, the DA could be raised by 5 per cent.
The basic ex-gratia for certain government employees increased from 368 per cent to 381 per cent last month. According to a Ministry of Personnel, Public Grievances, and Pensions office memorandum, this is for surviving CPF beneficiaries who retired from employment between November 18, 1960, and December 31, 1985.
"The surviving CPF beneficiaries who retired from service between 18.11.1960 and 31.12.1985 and who are entitled to basic ex-gratia @ Rs 3,000, Rs 1,000, Rs 750, and Rs 650 for Group A, B, C, and D, respectively, w.e.f June 4, 2013, vide OM No. 1/10/201 2-P&PW(E) dtd. June 27, 2013, shall now be entitled to enhanced dearness relief from 368 per cent to 381 per cent of the basic ex-gratia w.e.f 01.01.2022," as per the official memorandum dated May 11.
Because of the exceptional situation caused by the COVID-19 pandemic, the central government has set aside three instalments of dearness allowance and dearness relief for January 1, 2020, July 1, 2020, and January 1, 2021. Following the reports, the central government has stated that general dearness allowance arrears retained from January 2020 to June 2021 will not be released.