Another piece of good news has emerged amid growing demands for the Fitment Factor to be raised, much to the delight of the central government employees. According to a number of media sources, the dearness allowance (DA) for government employees under the 7th Pay Commission pay package will likely increase by March 2023.
The Centre is also expected to increase the dearness relief (DR) for retirees in addition to the DA hike. Dearness allowance (DA) and dearness relief (DR) are updated twice a year, first in January and then again in July, as the government employees must be aware.
About 48 lakh central government employees and 68 lakh pensioners benefited from the DA boost in September 2022. The Center increased DA by 4% in September 2022, bringing the overall increase to 38%. Prior to this, the 7th Pay Commission increased the 34 percent DA that Central Government employees received in March 2022 by 3 percent.
Furthermore, according to media reports, DA raises of 3 to 5 percent are expected for central government employees in March 2023.
However, the decision to increase the Dearness Allowance will be made based on the inflation rate and the 7th CPC's recommendations. There is a potential that the DA will be raised further if the inflation rate is high at the time.
Updates on the 18 Months DA Arrears:
It is expected that the Centre would address the 18-month arrear in the upcoming cabinet meeting. The employees may receive reimbursement for an 18-month DA arrear if it is authorized. The amount of DA arrears is determined based on the pay band and structure of the employee.
