7th Pay Commission DA Hike: Central government employees received a substantial increase in their dearness allowance (DA) starting from July 1. The DA has risen from 42 percent to 46 percent, marking a significant four percent jump.
Calculation Method for the New Dearness Allowance (DA)
The determination of the Dearness Allowance (DA) for central government employees relies on the All India Consumer Price Index (AICPI). Each month, the AICPI numbers are published, and based on these figures, the DA score is recalculated every six months. In May, the AICPI index saw a significant increase of 0.50 points, rising from 134.02 in April to 134.7. This jump in the AICPI index has contributed to the calculation of the new DA for central government employees.
Confirmed dearness allowance
The calculation of the new DA is based on the All India Consumer Price Index (AICPI), which is released at the end of each month. The May AICPI index showed a gain of 0.50 points. As a result, the confirmed DA has reached 45.58 percent. The experts’ predictions of a 4 percent increase in DA have been validated by the AICPI index.
How much has the DA score increased month by month?
Under the 7th Pay Commission, the AICPI Index (Industrial Workers) numbers for the past months were as follows:
- January 2023: 132.8 points, DA 43.08 percent
- February 2023: 132.7 points, DA 43.79 percent
- March 2023: 133.3 points, DA 44.46 percent
- April 2023: 134.2 points, DA 45.04 percent
- May 2023: 134.7 points, DA 45.58 percent
The DA score is revised every six months based on the AICPI numbers, and the increase in DA is confirmed at four percent. The AICPI index for June is yet to be released and will be available at the end of July. Central government employees had been eagerly anticipating this hike in their DA, and now they can benefit from the significant increase starting July 1.