7th Pay Commission: DA hike may not happen due to THIS reason

Central government employees who were expecting a DA hike in the month of July may get disappointed as there are chances that the increase in DA will not happen. 

New Delhi: Recently, the central government has offered employees a DA raise as a gift. With this declaration, the government raised the DA from 31% to 34%. The Finance Ministry also approved DA arrears. Employees are currently waiting for the DA to be hiked in July.

It is important to note that the Dearness Allowance of Central Government Employees is amended twice a year. The first revision covers the period from January to June. The second period lasts from July to December. In March, the first DA modification was announced. It will be changed once more in July. Meanwhile, the statistics for dearness allowance have begun to arrive. According to the data given so far, there appears to be little chance of a rise in the next dearness allowance. The January and February AICPI index data has just arrived. These are showing a decline as against December 2021.

The AICPI figure in December 2021 was 125.4. It declined 0.3 points to 125.1 in January 2022. Following that, there was a 0.1-point drop in February. Due to the two consecutive months of decline, it is expected that the dearness allowance will barely increase in July. If this figure falls further, there will be no rise in DA. Even if DA falls below 124, it can be kept constant.

The Ministry of Labor and Employment determines the All India Consumer Price Index (AICPI) numbers based on retail prices collected from 317 markets in 88 industrially key locations across the country. The index was created for 88 centres as well as the overall country. The AICPI data is issued on the last working day of each month.

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