7th Pay Commission: Latest Update on AICPI Figure and Its Effect on DA Hike

The most recent AICPI index statistics were just released, and employees of the central government were not pleased with the results. The decision to increase Dearness Allowance for government employees is made according to the All-India Consumer Price Index.

Due to the rising inflation, a DA increase of at least 4% was expected; however, the increase may now be lower. It can be considered a serious setback for the tens of thousands of central government workers and retirees who rely on DA and DR payments to lessen the impact of rising costs.

It was expected that the DA hike would be granted, matching the amount of the second hike in 2022. Central staff received a major Diwali 2022 bonanza with a 4 percent rise after the initial 3 percent hike.

It was expected that the 2023 first round of DA increases will surpass the 2022 DA total. From March through October 2022, the AICPI index kept increasing. The AICPI index, however, stabilized in November 2022 rather than continuing its upward path. From October through November 2022, the AICPI remained at 132.5.

All eyes will now be on the December 2022 AICPI Index. According to the regulations of the 7th Pay Commission, central government employees cannot expect a larger DA raise than in 2022 without a spike in the AICPI data.

According to media reports, it seems doubtful that the AICPI index value would hit 133.5 in December 2022. In such a case, central personnel could have to settle for a 3 percent DA increase rather than the anticipated 4 percent increase.

The first DA increase for 2023 will most likely be announced in March. According to the most recent sources, the announcement might take place on March 1, 2023, a week before the Holi festival. This suggests that the government may wish happy holidays to the central personnel.

It was also mentioned that a cabinet meeting might be conducted on the subject on March 1. Once the hike is announced in March, it will take effect in January 2023. The central government employees will receive the raised payments in arrears for January and February.