Good news on Dearness Allowance (DA) is likely to reach the Central Government employees soon. Now, there is a high probability that the Centre will discuss the issue in the upcoming cabinet meeting, which is expected to happen in the first week of August.
The employees' long wait would come to an end if the government brings up the DA hike topic for consideration during the cabinet meeting and increases the allowance. Additionally, as the DA for the period of July through December is anticipated to be the highest this time, central government employees will see a big raise in their pay.
How much DA hike will employees get?
This time, a record DA increase based on the 7th Pay Commission's recommendations is anticipated because of the latest All-India CPI-IW data for the month of May. If the figures are any indication, there may be a DA increase of about or above 4%.
The May 2022 All-India CPI-IW climbed by 1.3 points to 129.0 (one hundred twenty-nine points). Comparing it to the increase of 0.42 percent between the same months a year earlier, it climbed by 1.02 percent, or one month, over the preceding month.
It is important to note that the AICP Index plays a major role in calculating the DA. The CG staff are therefore expecting a 4-5% raise given the good May results. The overall DA will reach 38% with a 4% increase.
When is the DA hike announcement?
The most recent rumors suggest that an announcement might be expected on August 7. A formal confirmation in this regard is still pending, though.
Prior to now, the COVID-19 pandemic had caused the Finance Ministry to halt the DA increase from January 2020 to June 30, 2021. However, the DA increased to 28% from 17% in July 2021 when it was reintroduced.
