7th Pay Commission Latest News: Central Government Employees To Get DA Hike In March

7th Pay Commission:  Central government employees may get good news next month as the union government may announce a hike of 4 per cent on Dearness Allowance (DA). With the upcoming 4 per cent increase, Dearness Allowance (DA) and Dearness Relief will cross the 50 per cent mark.

The 12-month average of the Consumer Price Index for Industrial Labor (CPI-IW) stood at 392.83. which means, DA must be increased to 50.2 per cent. The Central Government decides the limit of increase in DA and Dearness Relief (DR) based on all India CPI-IW data.

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Dearness Allowance is calculated on the basic salary of employees. Working union government employees get DA, while DR is available to pensioners. The government increase DA and DR twice a year – January and July.

The DA increased by 4 per cent to 46 per cent in October 2023. Considering the current inflation rate, the next DA hike is expected to be 4 per cent. According to official figures, 47.58 lakh central government employees and 69.76 lakh pensioners will be benefitted.

Formula to calculate DA for Public Sector (Central Government) Employees-  Dearness Allowance Percentage = ((Average of AICPI (base year 2016=100) for last 3 months -126.33)/126.33) *100

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