7th pay commission: Dearness allowance (DA) hike due, announcement expected soon

For the second half of this year, the government is likely to soon announce the next instalment of the DA (dearness allowance) for central government employees and pensioners. This announcement typically takes place around this time of year, just before the Navaratri festival ends.

Since that pattern has been observed for many years, central government employees and pensioners who are paid in accordance with the 7th Pay Commission are anticipating changes to the Dearness Allowance (DA) and Dearness Relief (DR) before these festival days.

Although it is not yet confirmed, the employees who have been waiting for the announcement of the DA Hike on Navratri day this year may get the good news on Wednesday.

The Cabinet Committee on Economic Affairs (CCEA) meeting is scheduled on Wednesday at 1100 am. Although the agenda for that meeting is not yet known, it is quite likely that the DA announcement will follow.

The cabinet meeting will take place after Prime Minister Narendra Modi's return on Wednesday; today from Japan, where he is travelling to attend the funeral of former Japanese Prime Minister Shinzo Abe.

Since this custom has been upheld for many years, it is thought that the DA raise may be on the agenda for approval at that cabinet meeting, but the agenda is not currently available.

Since the dearness allowance is updated each year before Navratri and following festivals, there is a good chance that this will be on the agenda.

It would be ideal for the government to announce the DA hike now that September 28, or today, is the third day of the Navaratri festival. This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners, and it also applies to civilian employees and those working in the defence services.

The staff would get the arrears payment along with their most recent paychecks because the current dearness announcement boost went into effect on July 1.

Every year on January 1 and July 1, the central government adjusts the dearness allowance and dearness relief; however, the decision is often published in March and September.

The proposal to enhance the dearness allowance (DA) for central government employees and the dearness relief (DR) for pensioners by 3 per cent to 34 per cent of the basic wage from 31 per cent previously had been agreed upon by the cabinet in March. This hike will take effect on January 1, 2022.

At the time, the government paid its workers three months late.

The agreed formula, which is based on the suggestions of the 7th central pay commission, is used to adjust the dearness allowance in accordance with any price increases.

Retail inflation, or consumer price inflation, has risen above the top limit of the Reserve Bank of India's goal range of 2–6 per cent each month this year, increasing the chance of a larger increase in DA, with media sources speculating a 4-5 per cent hike.