7th Pay Commission: Good news for central govt employees, 3% DA hike likely to be announced on...

The long-pending announcement on the increase in dearness allowance(DA) and dearness relief(DR) for government employees is expected after the Union Cabinet meeting on Wednesday.  The development comes after the Confederation of Central Government Employees and Workers sent a letter to Finance Minister Nirmala Sitharaman expressing concern over the delay.

The Centre usually revises DA and DR twice a year in January and July, with the official announcement following later. This year, the announcement was expected in October, however, no formal statement has yet been made on the same. As per News18 Hindi reports, the government is likely to approve the DA/ DR hike in its Cabinet meeting before Diwali.  It is expected that DA see a 3-4% jump from the current 50% as per reports. This means that entry-level employees earning Rs 18000 will have a salary increase of Rs 540-720 per month. 

In the letter, SB Yadav, the confederation’s general secretary, expressed displeasure over the delayed announcement. “There is discontent among employees and pensioners due to the delay in the announcement of DA/ DR. With Durga Puja approaching, the PLB and Adhoc Bonus should also be declared,” read the letter. 

Most recently, the government announced a 4 per cent DA/DR hike in March with the adjustment effective from January 2024. Last year, the DA hike was made official in the first week of October. The anticipated hike would be adjusted from July 1, 2024, with employees receiving three-month arrears in their October salaries. 

For those unaware,  DA applies to all the currently serving employees while DR applies to all pensioners, to adjust the salary or pension to the increasing cost of living. DA hike is based on the Consumer Price Index(AICPI) that follows the retail price fluctuation across different sectors.