7th Pay Commission: Can Central Government Employees Expect DA Hike Post-Budget 2023 Release?

The next round of Dearness Allowance (DA) hikes is eagerly expected by thousands of central government employees. After the Budget 2023, the government will possibly approve the continued demand by central employees.

According to media reports the minimum wage for employees of the central government may increase following the release of the Union Budget 2023 by Finance Minister Nirmala Sitharaman on February 1. The employees' side has argued that DA raises should be supported in light of rising inflation, leading to a request for a raise in basic pay.

According to the most recent sources, the government may also take into account changing the salary fitment factor for central government employees under the guidelines of the 7th Pay Commission. Currently, 2.57 times is the standard fitting factor for government employees. The demand is to increase this ratio to 3.68 times, which will result in an increase of 8,000 over the present rate of 18,000 rupees.

In March 2023, the central government is also expected to increase the DA of central government employees. The first DA increase of 2023 will take effect in January. The most recent AICPI results slightly disappointed those workers who were hoping for a raise of more than 4% this time.

The All-India Consumer Price Index (AICPI) number increased between April and October but remained unchanged in November. The AICPI is important in determining the amount of the DA increase for government employees. A rise would have raised hopes for a larger DA boost. The central government workforce received a Diwali treat in the form of a 4 percent DA rise after a 3 percent raise in January 2022.