7th Pay Commission: Will 18-month DA arrear be greenlit for central employees? Check latest update

7th Pay Commission latest news: Central government employees are eagerly anticipating the next round of Dearness Allowance (DA) revision. As per the latest update, the DA hike announcement could happen in early August. This would be the fourth hike in DA since it was initiated by the Centre after a halt of more than a year amid the Covid-19 pandemic. 

Since the government restarted DA hikes, central employees have received multiple hikes, from DA to House Rent Allowance (HRA) in the last year. However, there hasn't been positive news on the standing demand for DA arrear for the 18-month period in which the crucial salary element was not revised. 

Will central government employees receive 18-month DA arrear?

Amid the freeze, central government employees saw three DA revisions omitted. The government’s stand on the issue has been that the DA arrear for the period between January 2020 and June 2021 is unlikely, it was earlier reported. Some reports have suggested that the issue is under consideration. However, these may be misleading. 

On the other hand, National Council of JCM Secretary (Staff Side) Shiv Gopal Mishra has been voicing the view that the government should consider compensating employees for the period when the DA revision was frozen. With the decision of stopping DA hike for the 18-month period being made by the government, it should now plan a negotiated settlement on the arrear issue, the JCM Secretary has said as per a report from DNA affiliate Zee Business. 

When the hike in DA was resumed after the cabinet meeting on July 14, 2021, the figure was revised by 11 percent in one go in order to compensate for the DA freeze for three installments of January 2020, June 2020, January 2021. If arrear is considered, then central government employees could get 11 percent arrear in lump sum amount.

Update on next DA hike

After the resumption in July 2021, the DA for central government employees was hiked by 11 percent. Since then, two more revisions were undertaken under the 7th Pay Commission, bringing the DA figure first to 31 percent from 28 percent and then to 34 percent with another 3 percent hike. Now, as per the latest reports and All-India Consumer Price Index (AICPI) data, a hike between 4 to 6 percent may be on the cards.