7th Pay Commission: BIG news for lakhs of Central Government Employees working in the country. The Centre is once again planning to increase the Dearness Allowance (DA) for the central government employees. According to sources, this time DA Hike will be increased by 3-4 percent.
Sources said that the decision regarding the same can be taken soon in the Union Cabinet meeting. The DA was last increased in the month of March.
What is Dearness Allowance
Dearness Allowance or DA is paid by the Centre to its employees and pensioners to counterbalance the impact of inflation. DA is hiked twice a year under the 7th Pay Commission of central employees.
For January 2022, the DA was hiked by 3 percent in March. The hike in DA depends on many factors including AICPI Index (All India Consumer Price Index) which saw a decline in January and February. But, it witnessed a huge jump in March.
Employees to get 3 percent DA hike
Employees of the Central Government currently get DA of 31 percent. If the government increases the DA by 3 percent according to the recommendations of the 7th Pay Commission, then the dearness allowance to the central employees will become 34%. According to the recommendation of the 7th Pay Commission, the Centre revises the DA twice a year (in January & July).
If the government decides to increase the DA, then it will directly benefit lakhs of people working in different govt. departments.
At present, the number of central employees is more than 50 lakhs, while 65 lakh former central employees are getting pension. In this way, more than 1.15 crore people are going to be benefited from this DA hike.
