7th Pay Commission latest news: After the first round of Dearness Allowance hike was recently announced for central government employees, there are strong indications that another 4 percent increase may be on the cards for July 2023 hike. The DA hike had restarted after the Covid freeze with a straight 11 percent hike in July 2021, taking the figure from 17 to 28 percent. Another round of hike announced in October 2021 took DA to 31 percent. 2022 saw a 3 percent hike first and then a 4 percent hike taking the figure to 38 percent. With the recent 4 percent hike, the DA for central government employees now stands at 42 percent.
According to latest reports and data from the All-India Consumer Price Index (AICPI) for the last four months, it is expected that the Union Cabinet could grant another 4 percent DA hike for July 2023 later in the year. There will be more clarity whether central employees will get a 3 or 4 percent hike after the upcoming AICPI figures.
On the other hand, latest media reports claim that the Centre may be considering a new formula for Dearness Allowance increase calculation. The government is planning to do away with the pay commission in the next few years and is set to introduce a new formula for calculation of salaries of central employees, according to a recent Zee Business report
In a fresh change to the rules, the employees may be permitted a change in fitment factor. Currently, the fitment factor under the 7th Pay Commission rules stands at 2.57 times. The Centre may review and increase the fitment factor, the report said quoting sources. It added that there are two views on the fitment factor increment, a hike from 2.57 to 3 or 3.68.
