7th Pay Commission: Govt Employees to Receive Increased Dearness Allowance from July 2023? Details Here

All eyes are on a second Dearness Allowance raise that might begin in July 2023 after the 7th Pay Commission recently announced the first round of Dearness Allowance hikes for central government employees.

According to media reports, experts forecast that commencing on July 1, 2023, the DA, as determined by the 7th Pay Commission, may increase by 3 to 4 per cent. Recently, the previous hike was announced with a 4% hike in DA in accordance with the 7th Pay Commission.

Following the COVID freeze, the DA increase resumed with a straight 11 percent increase in July 2021, bringing the percentage from 17 to 28 percent. In October 2021, another round of raise was announced taking DA to 31 per cent. 

2022 observed a 3 percent rise first and then a 4 percent rise bringing the figure to 38 per cent. With a recent 4 percent rise, the DA for central government employees now stands at 42 per cent.

Under the Ministry of Labour and Employment, the Central Government assesses a Dearness Allowance hike on the basis of the All-India CPI-IW data released by the Labour Bureau. According to a press release by Labour Bureau, for February 2023, the AICPI-IW decreased by 0.1 points to 132.7. The All-India Index for January 2023 was 132.8. While the AICPI-IW data for March 2023 will be released on 28th April, 2023, the February data displays that the DA/DR rate may rise by 3 per cent.

According to a report, in the next few years, the government is planning to do away with the pay commission and is set to initiate a new formula for the computation of the salary of central employees.