Seventh Pay Commission: Good news for government employees; Centre may increase DA by 4%

The Centre may increase the Dearness Allowance (DA) of its employees by 4 percent.

This means the total DA could reach up to 38 percent.

The AICP Index, a crucial factor in determining the DA, for May points to the probability of an increase in the DA of the central government. The government may bring in some more good news for the employees in July.

On March 30, Union Cabinet hiked Dearness Allowance (DA) and Dearness Relief (DR) by 3 percent to 34 percent to compensate for the price rise, benefitting over 1.16 crore central government employees and pensioners.

The additional installment is effective from January 1, 2022. The increase is by the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.