7th Pay Commission: DA Hike of Central Employees Increased to 6% in July, DA Arrears to Clear Soon

The central government workforce is about to experience good fortune because the Dearness Allowance will likely increase in July. According to reports, this increase may add Rs 40,000 to the salaries of central government personnel.

Is DA Hike of 6% Possible?

According to data from the All-India Consumer Price Index (AICPI) so far this year, it appears that central personnel would likely receive a sizable DA boost of 5%. Compared to the earlier anticipated increase of 4%, this amount has increased by a percentage. According to a Zee News Hindi article, this percentage could rise to 6% if the AICPI data for May continues its increasing trajectory.

After a 3 percent increase in January of this year, the predicted 5 percent increase will raise the DA to 39 percent, from where it presently stands at 34 percent. If this increases to 6 percent, it will be a huge boost in light of the rising inflation in India and around the world. With such a boost, income might climb by as much as Rs 3,400 per month or little over Rs 40,000.

Will the 18-Month-Old DA Arrears Clear?

Reports regarding the payment of Dearness Allowance (DA) arrears that have been outstanding for 18 months have gained momentum once more. Recent sources indicate that the problem of paying DA arrears for the months of January 2020 to June 2021 may be resolved soon. The Central Government workforce shouldn't give up on the possibility of receiving all outstanding arrears of Rs 2 lakh in a single payment. The pay band and structure of the employees would affect the amount of DA arrears.

When Can We Expect the Announcement?

Employees of the central government receive the DA increase twice a year, in January and July. Typically, the announcement occurs between March and September. The Finance Ministry suspended the central employees' DA increase between January 2020 and June 2021 due to the epidemic.

When employees' DA increased from 17 to 28 percent in July 2021, it was then put into effect. DA increased again in October, reaching 31 percent, and then again in January, reaching 34 percent as of this publishing.