7th Pay Commission: DA to Be Hiked by 41% After Budget 2023? Here's What AICPI Figures Suggest

7th Pay Commission latest update: After India gained its independence, the government established pay commissions to provide recommendations regarding modifications to the pay scale (salary) for employees of the central government.

Seven pay commissions have been established to date. The most recent commission's recommendations were adopted in 2016, the same year that former finance minister Arun Jaitley declared that it was time to increase employees' salaries annually.

The All India Consumer Price Index (AICPI) data that the Labor Ministry will release on January 31 may hint at the impending Dearness Allowance (DA) hike. The only factor used to calculate the daily pay for central workers is the AICPI index. The index covered 88 centers as well as the entire nation. The last working day of every month sees the release of the AICPI.

The AICPI numbers for November 2022 were 132.5. According to media reports, if the future index (for December 2022) maintains the same, the dearness allowance would increase by 3%. As a result, the DA will rise to 41% from its current 38 percent.

According to the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending June 2022, the Union Cabinet had approved the release of an additional installment of Dearness Allowance and Dearness Relief @4 percent to Central Government employees and pensioners due from July 1, 2022. With effect from July 1, 2022, Central Government employees and pensioners are now eligible for increased amounts of Dearness Allowance and Dearness Relief, respectively.

According to estimates, the additional financial effects of this increase in Dearness Allowance for Central Government Employees will total Rs. 6,591.36 billion each year and Rs. 4,394.24 billion in the fiscal year 2022–2023 (i.e. for 8 months from July, 2022 to February, 2023).