7th Pay Commission: The Central Government is likely to increase the Dearness Allowance (DA) for its over one crore employees and pensioners by four percentage points from the existing 38 per cent to 42 percent. A formula has been agreed upon for this purpose.
Dearness Allowance for employees and pensioners is calculated on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. The Labor Bureau is a part of the Ministry of Labor. Shiv Gopal Mishra, general secretary of the All India Railway men’s Federation, told PTI, “The CPI-IW for December 2022 was released on January 31, 2023.
The increase in dearness allowance works out to 4.23 per cent. But the government does not take decimals into DA. In such a situation, there can be an increase of four percentage points in DA. It can be increased from 38 percent to 42 percent.
He informed that the Department of Expenditure of the Finance Ministry will make a proposal to increase DA. In this, its revenue effect will also be told. This proposal will be placed before the Union Cabinet for approval. The increase in dearness allowance will be applicable from January 1, 2023.
