7th Pay Commission: Another round of DA hike in July? Central government employees should check this update | Personal finance news

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New Delhi: 7th Salaries Commission Latest Update – Central government employees may be awaiting more good news in July. According to the media, the government could announce a further increase in the Dearness Allowance in the coming months.

The dearness allowance for central administration employees is reviewed 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 the dearness allowance for the year 2022 was announced in March, new reports indicate that the next revision in July is likely due to the increase in the AICP index.

The figures of the AICPI index play a determining role in the decision of revision of the DA. In December 2021, the AICPI figure was 125.4. But, in January 2022, it fell by 0.3 points and fell to 125.1. The All-India CPI-IW for February 2022 declined by 0.1 points and stood at 125.0 (one hundred and twenty-five). Over a month of percentage change, it decreased by 0.08% compared to the previous month, compared to an increase of 0.68% recorded between the corresponding months a year ago. For the month of March, there was a jump of 1 point. The AICPI index figures for March stand at 126.

How much DA is likely to be increased in July?

If the reports are to be believed, there could be another 4% rise in the DA. This means that the total DA could reach up to 38%. It should be recalled that on March 30, the Union Cabinet had increased the High Cost Allowance (DA) and the High Cost Relief (DR) from 3% to 34% to compensate for higher prices, in favor of more than 1.16 crore central government employees and retirees.

The additional installment is effective from January 1, 2022. The increase is in line with the accepted formula, which is based on the recommendations of the 7th Central Wage Commission. With the recent announcement, the hope for the next DA hike, which is usually stipulated for the month of July, has also accelerated. However, bad news could be that the DA hike, scheduled for July, may not be announced.

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