7th Pay Commission UPDATE: Centre To Announce DA Hike Today? What We Know So Far

DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year — January and July.

7th Pay Commission BIG Update: The Union Cabinet meeting chaired by PM Narendra Modi is reportedly taking place today. According to the media reports, the DA/DR hike decision for the central government employees and pensioners is likely to be taken today. However, it is important to note that there is no official confirmation about DA/DR being on the agenda of today’s meeting. Earlier reports had suggested that the government is expected to announce the wage boost before the holiday season.

The DA increase will likely be 4% rather than the earlier predicted 3%. Once announced, the increase will take effect on July 1, 2023. Given that Navratri begins on October 15 and Dussehra is on October 24, a notification of a DA hike and arrears would be a welcome and timely present for government employees and pensioners.

According to a report by ET, a 4 percent hike in dearness allowance (DA) is expected for central government employees. It is important to note that the Dearness allowance for Central government employees and pensioners is calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. Following this adjustment, the dearness allowance is projected to reach 46 percent.

DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year — January and July. Currently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance.

Check How DA is Calculated

The basic formula to increase DA is based on the latest Consumer Price Index for Industrial Workers (CPI-IW). Notably, the DA is given to government employees, while DR is given to pensioners.

The DA and DR are hiked twice a year — January and July. Right now, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance.

When last time DA was hiked in March 2023, it was increased by 4 per cent to 42 per cent. Given the current inflation rate, the next DA hike is expected to be 3 per cent this season.