3% DA Hike To Be Announced Next Month, Per Reports From 7th Pay Commission

The news is anticipated to be made shortly, even though central government workers have been waiting for the July DA boost that would increase their pay. The decision is most likely to be revealed in September 2023, according to media sources, despite there being no formal confirmation of the announcement date for the DA raise.

The government is anticipated to boost the dearness allowance (DA) by 3 percentage points to 45 percent as retail inflation in India continues to grow and reached a 15-month high level in July, according to sources. The increase of DA will take effect on July 1, 2023.

The Labour Bureau releases the most recent Consumer Price Index for Industrial Workers (CPI-IW) each month, which is used to calculate the dearness allowance for workers and retirees. A division of the Labor Ministry is the Labor Bureau.

On July 31, 2023, the CPI-IW for June 2023 was published. We want the dearness allowance to increase by four percentage points. But the increase in the dearness allowance amounts to only a little bit over three percentage points. Beyond the decimal point increases in DA are not taken into account by the government. Thus, DA is expected to be raised by three percentage points to 45 percent, according to Shiva Gopal Mishra, general secretary of the All India Railwaymen Federation, who spoke to PTI recently.

Additionally, he said that the finance ministry’s spending section will draft a proposal to increase DA along with the income implications and submit it for approval to the Union Cabinet.

Over one crore pensioners and workers of the federal government now get a 42% dearness payment.

Government workers get DA, whilst retirees receive DR. In January and July of each year, DA and DR are raised.

The DA was raised by 4% to 42% in the most recent increment in March 2023. According to a number of sources, the next DA increase will likely be 4% given the current inflation rate.

Recently, a number of state governments raised the dearness allowance for their state government workers, including those in Madhya Pradesh, Odisha, Karnataka, Jharkhand, and Himachal Pradesh.