Mumbai, May 27: In what could be good news, the Central Government employees are likely to receive an update on their Dearness Allowance (DA) very soon. According to reports, the update on DA is most likely to come by May 3 when the Centre will sit to decide on how much dearness allowance (DA) can be increased at the end of July.
As per the recommendations of the 7th Pay Commission, the DA of Central Government employees is revised twice a year. At present, the employees of the Central government are receiving 34 percent Dearness Allowance. 7th Pay Commission: Central Government To Take Big Decision on Fitment Factor Soon, Minimum Pay To Increase to Rs 26,000.
This year, in March 2022, the Union Cabinet increased the DA from 31 percent to 34 percent. This move benefitted about 47.68 lakh Central Government employees and 68.62 lakh, pensioners. Last year, the Centre increased the DA of all its employees twice; first in July and then in October.
According to sources, if the cabinet reaches an agreement, then the Dearness Allowance (DA) will be increased from 34 to 38 percent. However, the official announcement regarding the hike in DA might come in August 2022.
It must be noted that the awaited revision in DA is likely due to the increase in the AICPI (All India Consumer Price Index). As per reports, the AICPI figure stood at 125.4 in December 2021, however, in January 2022, the AICPI figure declined by 0.3 points and fell to 125.1. The next month, it once again decreased by 0.1 points and stood at 125.0. 7th Pay Commission Latest Update: Centre Likely To Announce 3% DA Hike for Government Employees on Holi 2022.
Having said that, the AICPI figure observed a jump of 1 point in March, while the numbers for April-May and June are yet to come. If the AICPI figure crosses 126, then there's a possibility of the government increasing the DA by 4 percent. This means the total DA could reach up to 38 percent from the present 31 percent.
(The above story first appeared on LatestLY on May 27, 2022 10:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).