DA Hike: Date confirmed! Dearness allowance will be available on this day, big update on arrears of government employees

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7th Pay Commission: The central government is considering giving a big gift to government employees and pensioners during the festival. According to media reports, the government will soon introduce Dearness Allowance (DA) in the Cabinet.DA Hike) can approve the increase. Looking at the rising inflation figures, it is being estimated that central employees and pensioners may get dearness allowance up to four percent this time. At present, employees get about 42 percent dearness allowance. In such a situation, if the government approves giving four percent dearness allowance, then the employees will get 46 percent dearness allowance. This increased dearness allowance will be available along with arrears from July 1, 2023. Earlier, dearness allowance was increased by the Central Government in the month of March. However, let us tell you that till now no information has been given by the Central Government regarding dearness allowance.

Announcement may be made on Dussehra

Dearness Allowance is usually announced by the Central Government around Dussehra in the month of October. This time also it is expected that this government can make an announcement regarding this in the next cabinet meeting. According to media reports, dearness allowance for employees and pensioners can be approved in the cabinet on October 25. 7th Pay Commission (7th pay commission) to the central employees and pensioners drawing salary under this, DA-DR will be paid along with the October salary or pension. That is, the dearness allowance of July, August and September will be given to the employees by adding it to the money coming in the month of November along with the arrears. Dearness allowance of employees is decided by Consumer Price Index (AICPI-IW). The formula for calculating dearness allowance has been fixed by the government- 7th CPC DA% = [{Average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100], When calculated on this formula, the dearness allowance of the employees is 4 percent.

Dearness allowance may increase by 4.24 percent

According to the index released by AICPI-IW, the average of the last 12 months is 382.32. By setting the formula accordingly [{382.32-261.42}/261.42×100]= 46.24 percent. At present central employees are getting 42 percent dearness allowance. In such a situation, if 46.24 percent dearness allowance is received from October, then the total increase in dearness allowance is 4.24 percent. More than one crore central employees and pensioners are going to benefit from this decision of the Central Government.

What is dearness allowance?

dearness allowance (Dearness Allowance,DA) is a type of allowance which is given to government employees and pensioners in the form of increase in their salary or pension according to inflation. Its objective is that when inflation increases, their salary or pension should be increased to improve their economic conditions. Its objective is that people are not only linked to the basic salary, but their income is adjusted to their economic needs and inflation. The basic basis of dearness allowance is a special kind of living wage which is called “Cost of Living”. Its basic objective is that a person can properly balance his cost of living based on his personal income. Governments reform the dearness allowance from time to time so that the use of salary and pension mechanism can help the individuals in saving the reasonable cost of living.

What is AICPI Index?

Full name of AICPI index (All India Consumer Price Index) Is. It is an important economic indicator which is used to measure the inflation experienced in India. This index is related to the inflation experienced by the Indian Government for business and financial services and measures consumer spending on various items like apparel, food, preventive and medicine etc. The specialty of AICPI index is that it takes into account the expenses of commercial and poor class consumers and determines the amount of inflation based on them. On the basis of these indices, the Government of India reviews and optimizes various pay scales, allowances and pensions. This index is important to understand the inflationary conditions in the Indian economy and also helps in planning social and economic schemes.

The Government of India usually releases two major AICPI indices:

• AICPI (IW) for summer season: Which measures the inflation experienced from April to September.

• AICPI (IW) for winter season: Which measures the inflation experienced from October to March.

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