7th Pay Commission: Good News for Central Government Employees! DA Hiked in These States

The dearness allowance (DA) and dearness relief (DR) hike announcement is eagerly awaited by Central Government employees and pensioners. At present, central government employees get DA at the rate of 34% of basic pay.

In the meantime, several state governments have increased the DA and DR rates for their workers and pensioners. Here are the five most recent developments in DA:

DA Increased in Tripura:

The proposal to increase the dearness allowance for state government employees by 5% was approved by the Tripura Government on Wednesday, 3 August. The state government retirees' dearness aid will also increase by 5%. From July 1st, 2022, the new DA/DR rate will be in effect. 1,04,683 regular employees and 80,855 pensioners will benefit from the state's increase in the DA/DR rate.

DA Increased in Madhya Pradesh:

The DA rate for state government employees was recently increased by the Madhya Pradesh government as well. State government employees in MP now receive DA at the same rate as the federal government, which is now 34%. The employees will get their August pay in September, reflecting the higher DA rate.

DA Increased in Uttarakhand:

The dearness allowance for more than 45,000 employees of corporations and local bodies in the state of Uttarakhand was raised by the government by 3%. The increase would go into effect on January 1, 2022.

DA Hike Updates for Central Government Employees:

For central government employees and pensioners, an increase in the dearness allowance and dearness relief rates is due. In light of the 0.2 percent increase in the All-India Consumer Price Index for Industrial Workers (AICPI-IW) during the past six months, it is expected that the government will announce a 4 percent raise and hike the DA rate to 38 percent.

This index is used by the Central Government to calculate the DA and DA rates for its employees and pensioners. However, the government has not yet issued a public notification regarding the DA increase.

Previous DA Hike:

The Central Government increased the DA rate by 3% to 34% in January 2022. This came after the DA rate had increased by 3% in October 2021.

According to the 7th Pay Commission's recommendations, DA increases have been authorized. The employee's compensation as determined by the 7th Pay Commission matrix, excluding any other sort of pay like special pay, is referred to as Basic Pay to calculate DA.