7th Pay Commission: Central government employees to soon get 3 per cent DA hike

With inflation hitting hard and prices of several goods sky rocketing, the government is expected to increase the dearness allowance (DA) by 3 percent. The DA hike is likely to be announced which will be effective from July 1, 2023.

The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The labour Bureau is a wing of the Labour Ministry.

Currently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance, after a 4 per cent DA hike was announced in March 2023. Given the current inflation rate, the next DA hike is expected to be 4 per cent, as per various reports.

DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year — January and July.

Recently, various state governments, including Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh, increased dearness allowance for their state government employees.

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