Here's a big update for Central Government employees who are expecting a pay hike. The All-India CPI-IW for July 2022 increased by 0.7 points to 129.9 points from 129.2 points in June 2022, according to figures for the month of July issued by the Union Labour Ministry.
The increase in AICPI Index data has made it possible for the employees' Dearness Allowance to increase starting in January of the next year.
The dearness allowance will increase in January of the next year based on the AICPI index data from July to December. And based on data from January to June, it is expected that the Dearness Allowance announcement for July will be issued soon.
DA Hike Announcement
According to sources familiar with the issue, the Central government will announce the Dearness Allowance for July on September 28.
This time, a 4% increase in the dearness allowance is expected.
Based on the 7th Pay Commission, the DA of central employees is typically increased twice a year, first in January and again in July. The AICPI index over the past six months determines the increase in DA.
DA to increase by 4%
This time, a 4% hike in the dearness allowance is anticipated. It will increase from 34 to 38 percent following the rise. The central government employees currently receive a dearness allowance of 34%. The Central government employees' salaries would increase significantly as a result of the DA's 38% hike.
How is DA different from DR?
For the unversed, pensioners receive dearness relief (DR), and government employees receive dearness allowance (DA). Notably, the Central Government updated the DA in March of this year, which later increased by 3% to stand at 34% of an Employee's Basic Salary.
