7th Pay Commission: Central Govt. Employees to Get Big DA Hike Along with 18-Month Arrears Coming in August?

The central government employees who have been waiting for a Dearness Allowance (DA) hike may soon get good news. According to recent media reports, the government may announce a DA hike during its upcoming cabinet meeting, which is scheduled for the first week of August. Reports further said that central government employees may receive a larger-than-anticipated DA raise by the end of July.

The most recent All-India CPI-IW data is what gives rise to this more optimistic outlook. The AICP Index, a key component in determining the DA, shows that an increase in the DA of the central government is likely in May. The government could provide more positive news to the workers later this month.

Latest Update on DA Hike:

According to the most recent media sources, the Dearness Allowance may increase by 6% in August. This implies that the overall DA could be as high as 40%. According to many media sources, the government may announce a DA hike around the third week of August. According to media reports, the meeting could very well occur on August 3. Employees will have to wait for official confirmation of these speculative claims.

Employees of the central government have their Dearness Allowance updated twice a year. While the second is offered from July to December, the first is offered from January to June.

In April 2022, the All-India CPI-IW rose by 1.7 points to 127.7. According to data from the Ministry of Labour & Employment, the 1-month percentage change climbed by 1.35 percent compared to the 0.42 percent increase between the same months a year before.

According to the most recent ministry data, the AICPI figures for May are at 129, which suggests with certainty that the DA would be greater than anticipated, or 6 percent, according to multiple media websites.

In March, the first dearness allowance rises for the year 2022 was announced. The AICPI value in December 2021 was 125.4. But it dropped to 125.1 in January 2022, a 0.3-point fall. In February 2022, the All-India CPI-IW dropped 0.1 points to 125.0.

In terms of a 1-month percentage change, it fell by 0.08 percent from the previous month, compared to a gain of 0.68 percent between comparable months a year earlier. There was an increase of 1 point for the month of March. 126 is the AICPI index value for March.

When Will Govt Employees Receive the 18-Months DA Arrears?

Employees in the central government noticed three DA revisions missing during the freeze. It was previously reported that the government's position on the matter was that a DA arrear for the time period of January 2020 to June 2021 was unlikely. According to several sources, the issue is being looked upon. These, however, might be false.

Shiv Gopal Mishra, the secretary of the National Council of JCM for the staff side, has been advocating that the government take into account paying workers for the time that the DA revision was frozen.

The JCM Secretary has reportedly stated that the government should now prepare for a negotiated settlement on the arrears issue after deciding to halt DA hikes for the next 18 months. The figure was revised by 11 percent all at once when the increase in DA was resumed following the cabinet meeting on July 14, 2021, to make up for the freeze on DA payments for the three months of January 2020, June 2020, and January 2021. If arrears are taken into account, central government employees may get a lump sum payment equal to 11% of the arrears.