7th Pay Commission: Central Govt Employees Expected To Have 5% Hike In Dearness Allowance; Know More

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The Logical Indian Crew

7th Pay Commission: Central Govt Employees Expected To Have 5% Hike In Dearness Allowance; Know More

The DA of the employees is revised twice a year, with announcements in January and then in July. The hike will benefit over 50 lakh employees and 65 lakh pensioners who will profit from this decision.

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Amid rising inflation, lakhs of central government employees are waiting for an announcement on a hike in their salary for the month of July. There is an expected hike of 5 per cent in Dearness Allowance (DA) which means it may reach up to 39 per cent.

The DA of the central government employees is revised twice a year, with announcements in January and then in July. The hike will benefit over 50 lakh government employees and 65 lakh pensioners who will profit from this decision.

All India CPI-IW Data

As per the report by Zee News, the reason behind this increment is the All India Consumer Price Index for Industrial Workers (CPI-IW) data which is crucial in determining the DA.

According to data from the Ministry of Labour and Employment, the CPI-IW for April 2022 increased by 1.7 points (a jump of 1.35 points from the previous month). Therefore, as the prevailing AICPI for May is high, the chances of getting a raise in DA are also high.

Inflation Responsible For Hike In DA

The increase in DA is attributed to inflation which stood at 6.33 per cent compared to 5.35 per cent in previous months. Food inflation stood at 7.05 per cent against 6.27 per cent last month. The retail inflation in May stood at 7.04 per cent, which is above the Reserve Bank of India's comfort level of 2-6 per cent.

As per a report by Economic Times, the Union Cabinet chaired by Prime Minister, Narendra Modi, has approved releasing an additional instalment of DA to central government employees and Dearness Relief to pensioners with effect from January 1, 2022. It will represent an increase of 3 per cent over the existing rate of 31 per cent of the basic pay to compensate for the price rise.

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Editor : Shiva Chaudhary
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