7th Pay Commission: DA Hike to Reach 40% This July? Read the Latest Update Here

A greater Dearness Allowance (DA) increase may be announced for the lakhs of central government employees who have been waiting for this since a long time. The most recent All-India CPI-IW data is what gives rise to this more optimistic outlook. The AICP Index, a significant element in deciding the DA, indicates that the DA of the central government is likely to rise in April. In July, the government might have more good news to share with the workforce.

According to the most recent media sources, the Dearness Allowance may increase by 6% in July. This implies that the overall DA could be as high as 40%.

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. The DA would undoubtedly exceed expectations if the AICPI statistics for May climb. 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 March. 126 is the AICPI index value for March.

Inflation year over year for the month was 6.33 percent, up from the prior month's 5.35 percent and the year prior's corresponding month's 5.14 percent. Similarly, according to the official figures, food inflation was 7.05%, up from 6.27% in the previous month and 4.78% in the same month a year ago.

The April AICP Index has increased anticipation that DA may be increased by up to 5%, meaning that the overall DA may increase to up to 39 percent. You may recall that the Union Cabinet increased the Dearness Allowance (DA) and Dearness Relief (DR) on March 30 to account for the price increase, benefiting more than 1.16 crore central government employees and retirees. 

The increases ranged from 3% to 34%. The extra payment will start to be due on January 1, 2022. The rise follows the approved formula, which was developed based on the suggestions made by the 7th Central Pay Commission.