7th Pay Commission: 4% DA hike along with 18 months arrears coming soon

New Delhi: Lakhs of central government employees who are waiting with a baited breath for announcement on hike in Dearness Allowance (DA) may hear the good news by next month, media reports have said.

The AICP Index, crucial factor in determining the DA, for the month of May points at the probability of increase in the DA of the central government. Government may bring in some more good news for the employees in the month of July. Now, if latest media reports are to be believed, Dearness Allowance  of the employees could by hiked by 4 percent. This means the total DA could reach upo 38 percent.

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.

The All-India CPI-IW for April, 2022 increased by 1.7 points and stood at 127.7 (one hundred twenty seven point seven). On 1-month percentage change, it increased by 1.35 per cent with respect to previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago, showed a Ministry of Labour & Employment data. As per latest ministry reports, the AICPI figures for May is at 129, increases probability of a 4 percent hike in DA.

The first increase in dearness allowance for the year 2022 was announced in March. In December 2021, the AICPI figure stood at 125.4. But, in January 2022, it declined by 0.3 points and fell to 125.1. The All-India CPI-IW for February, 2022 decreased by 0.1 points and stood at 125.0 (one hundred twenty five). On 1-month percentage change, it decreased by 0.08 per cent with respect to previous month compared to increase of 0.68 per cent recorded between corresponding months a year ago. For the month of March, there was a jump of 1 point. The AICPI index figures for March stands at 126.

It may be recalled that the Union Cabinet had on March 30 hiked Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent to 34 per cent to compensate for the price rise, benefitting over 1.16 crore central government employees and pensioners.

The additional instalment is effective from January 1, 2022. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. 

18 months arrears coming soon

Online media is yet again abuzz with updates regarding the payment of 18 months-pending Dearness allowance (DA) arrears. As per fresh reports, the Central government employees might soon hear on pending DA arrears. Media reports say that the issue regarding payment of DA arrears of 18 months from January 2020 to June 2021 might be taken up soon.

The Dearness Allowance and Dearness Relief of Central government employees and pensioners were restored to 31% from 17% from October 2021, however the arrears have not been deposited as yet.

Shiv Gopal Mishra of the National Council of JCM, was previously quoted as saying that the DA arrears of Level-1 employees range from Rs 11,880 to Rs 37,554. Whereas, for Level-13 (7th CPC basic pay scale Rs 1,23,100 to Rs 2,15,900) or Level-14 (pay scale), the DA arrears in the hands of an employee will be Rs 1,44,200-2,18,200 that will be paid, quoted the reports.