7th Pay Commission (Dearness Allowance) Latest News: Central Government employees and Pensioners are currently getting Dearness Allowance (DA) and Dearness Relief (DR) at the rate of 34%. They are expecting that the Union Cabinet led by Prime Minister Narendra Modi will soon announce a hike in DA and DR rates for Central Government employees and pensioners respectively.
The Government revises DA/DR in order to compensate for the erosion of monthly salary/pension wealth due to rising inflation. The revision is done bi-annually.
The expectation of employees and pensioners regarding the DA/DR hike is high as it is pending since July 2022. Employees are hoping that they will get the good news about the DA rate hike ahead of the festival season.
Meanwhile, with the Ganesh Chaturthi celebrations starting across India on Wednesday, festival season 2022 has begun. Several other festivals across the country will follow the Ganesha celebrations in the next few months.
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Recently, the Government’s official fact-checker busted the fake news being circulated by one social media claiming the Government has officially raised the DA rate.
DA/DR rate hike decisions are generally taken during the Union Cabinet meeting led by the Prime Minister. The latest rate of 34% DA/DR was announced in March 2022 after the Union Cabinet approved to release of an additional instalment of DA to Central Government employees and DR to Central Government pensioners with effect from 01-01-2022. The decision in march raised the DA/DR rate by 3% over the then 31% rate. DA rate is calculated as a percentage of the Basic Pay/Pension.
Also, the recision in DA/DR rate is done as per the accepted formula recommended by the 7th Central Pay Commission.
Meanwhile, several states like Maharashtra, Tamil Nadu, Chattisgarh, and Gujarat announced DA hike in August as they sought to bring the take-home pay of their employees at par with the Central Government Employees.
