Pattern of DA Increases for Government Employees May Continue as per 7th Pay Commission

According to the latest 7th Pay Commission latest news, following the recent announcement of the first round of Dearness Allowance hikes for central government employees, there are vital signs that another 4% boost may be in the works for July 2023. Following the Covid moratorium, the DA rise resumed with a straight 11 percent jump in July 2021, raising 17 to 28 percent. Another wave of increases announced in October 2021 increased DA to 31%. In 2022, a 3% increase was followed by a 4% increase, bringing the total to 38%. With the latest 4% increase, the DA for central government employees is currently 42 percent. 

Statistics from the All-India Consumer Price Index

According to the most recent sources and statistics from the All-India Consumer Price Index (AICPI) for the previous four months, the Union Cabinet is set to authorise another 4% DA increase for July 2023 later this year. Following the release of the AICPI numbers, it will be apparent if central personnel will receive a 3 or 4 percent raise. 

The government intends to abolish the pay commission in the coming years

According to recent media reports, the Centre may be exploring a new mechanism for calculating Dearness Allowance increases. According to a recent Zee Business story, the government intends to abolish the pay commission in the coming years and replace it with a new method for calculating central employees' salaries. 

The fitment factor under the 7th Pay Commission regulations is now 2.57 times

Employees may adjust their relevant factors in a new regulation modification. The fitment factor under the 7th Pay Commission regulations is now 2.57 times. According to the cited source, the Centre may examine and enhance the relevant factor. It went on to say that there are two options for increasing the relevant factor, from 2.57 to 3 or from 3.68 to 3.68.