7th Pay Commission: Suspense on Dearness Allowance hike To Be Over In Today's Cabinet Meet? DA Diwali Bonanza for Government Employees Likely

New Delhi: 7th Pay Commission DA Hike Latest update-- The suspense on the announcement on Dearness Allowance for the central government employees may get over today. The Union Cabinet meeting, scheduled for today might take up deliberations on Dearness Allowance hike. 

Several media reports have said that the good news on DA hike will come before Diwali, adding that the same has got approval of the Finance Ministry. Hence all eyes are set on today's union cabinet meet that might decide the quantum of DA hike while the increased DA will be applicable from July 1.

Media reports are abuzz with speculations that government may announce a 4 percent DA hike from the current 42 percent to 46 percent. The recognised formula, which is based on the recommendations of the 7th Central Pay Commission, shall be followed in order to raise DA.

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.

It may be recalled that te Union Cabinet chaired by the Prime Minister Narendra Modi, in March gave its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023.  The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise. The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum. 

All-India CPI-IW (AICPI) Index is the final data for determining the calculation of Dearness Allowance and the foundation for determining the DA quantum. Average figures of CPI-IW for the last 12 months is 382.32 and based on the formula DA will be 46.24 percent as compared to previous time's 42.37 percent.