7th Pay Commission : Government employees have been waiting for the hike in DA for a long time. Now they have got a good news. In view of the inflation in the category of industrial worker, the government can increase the Dearness Allowance by about 4 percent. However, no announcement has been made by the government regarding this yet, but it is expected that the government can definitely make such an announcement next month.
High inflation rate
As per the latest official data, retail inflation for industrial workers based on the all-India CPI-IW rose to 5.57 per cent in June from 4.42 per cent in May this year. This increase has happened due to increase in the prices of food items.
DA increases twice a year
The central government decides on the basis of All-India CPI-IW data (All-India CPI-IW data). DA is given to government employees, while DR is given to pensioners. DA and DR increase twice a year – January and July.
DA may increase by 4%
In the last hike in March 2023, DA was raised by 4 per cent to 42 per cent. According to media reports, considering the inflation rate, the DA next hike is expected to be 4 percent. According to official figures, there are 47.58 lakh central government employees and 69.76 lakh pensioners. Employees and pensioners will benefit from the government’s increase in DA once again. Recently, the state governments of Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh had increased the dearness allowance of their employees.
All-India CPI- Industrial Workers
As per the All-India CPI-IW, the maximum increase in the current index came from the Food & Beverages group, which contributed 1.62 percentage points to the total change. If we talk about the products, Rice, Wheat, Wheat Flour, Arhar Dal, Moong Dal, Fresh Fish, Poultry Chicken, Egg-Chicken, Apple, Banana, Brinjal, Carrot, Ginger, Cauliflower, Green Chilli, Potato, Onion, Tomato , cumin, betel nut, casual wear, canvas shoes, utensils, medicine ayurvedic etc are responsible for the increase in the index. However, it declined in the prices of Mustard Oil, Palm Oil, Sunflower Oil, Coconut Oil, Lemon, Mango, Kerosene which dragged down the index.