7th Pay Commission: How much DA is likely to be hiked in July? THIS factor has the answer

New Delhi: 7th Pay Commission Latest update-- The government might announce another round of hike in the Dearness Allowance (DA) in the coming months, thus bringing more joy to the central government employees, media reports have said.

As per reports the government might hike DA for the second time this year around July.

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. Now that the first increase in dearness allowance for the year 2022 has been announced in March, new reports are stating that the next revision in July is likely due to the increase in the AICP Index.

March AICPI index figures, which is instrumental in DA revision decision, have shown promise for a DA hike. 

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.

How much DA is likely to be hiked in July?

If reports are to be believed, there could be a further four percent hike in DA. This means the total DA could reach upo 38 percent. 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 be 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. With the recent announcement, the hope for the next DA hike, which usually is stipulated for the month of July, has also taken pace. However, one bad news could be that the DA hike, scheduled for July may not be announced.