New Delhi, August 31: The Centre is likely to hike rate of dearness allowance or DA, under the 7th Pay Commission, by Dussehra or Diwali, according to a report. The first hike in DA rate was announced in January this year. The increment, however, came into effect from July 1. Now, reports said there could be another increase in DA rate for central government employees who get paid as per the 7th Pay Commission or 7th CPC. 7th Pay Commission Latest News Today: Major Hike in Salary of Central Government Employees If DA Rate Touches 31%, Check Calculation Here.
The Centre may announce a hike of 3 percent in DA rate by Dussehra or Diwali, a report by Moneycontrol said. Currently, under the 7th Pay Commission, central government employees get 28 percent of their basic pay as DA. If a hike of 3 percent is announced, central government employees will get 31 percent of their basic pay as DA. Usually, the DA rate is increased twice every year. There was an increase of 4 percent in DA rate in January this year.
Another hike of 3 percent in DA rate is likely by Dussehra or Diwali, meaning in October or November. There have been reports that said a hike in DA rate could be announced in September. The Centre, however, has been silent on the issue. A recent report by DNA cited the data released by All India Consumer Price Index (AICPI) from January to May to state that a 3 percent hike in DA is more likely.
The AICPI touched 120.6 following an increase of 0.5 points in the index for May 2021. The Ministry of Labour is yet to release the data for June. If the AICPI touches 130 in June, a hike of 4 percent in DA could be announced. But it is impossible for AICPI to jump 10 points in a month, hence, a 3 percent hike in DA is more likely, said the report.
(The above story first appeared on LatestLY on Aug 31, 2021 12:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).