7th Pay Commission: Government employees to get 4% DA hike in March 2024

7th Pay Commission: According to various media reports, the government is likely to announce a four per cent hike in Dearness Allowance (DA) for central government employees next month March 2024.

Unemployment benefits for employees and pensioners are worked out based on the latest Consumer Price Index of Industrial Workers (CPI-IW) released every month by the Labor Bureau. The increase in DA will be as per the accepted formula based on the recommendations of the 7th Central Pay Commission.

In October 2023, the Cabinet had last increased DA for government employees and Dearness Relief (DR) for pensioners by four per cent. With a four percent increase, DA was raised from 42 percent to 46 percent. 48.67 lakh central government employees and 67.95 lakh pensioners have benefited from this decision.

Earlier, the government had approved Diwali bonuses for Group C and non-gazetted Group B level officers, including paramilitary forces. For 2022–2023, the Finance Ministry has set a limit of Rs 7,000 for calculation of non-productivity bonuses for central government employees. The government decides the increase in DA based on the inflation rate of the country.

Also Read: Google Pay Will Stop Working From This Date

If inflation is high, DA is often increased. The increase in DA and DR is determined by the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) for the fiscal year. Meanwhile, West Bengal Chief Minister Mamata Banerjee announced in December 2023 that her government would offer a four per cent hike in DA to all its employees from New Year’s Day.

Also Read: CBSE Class 10, 12 Result 2024: Date And Website Details

Stating that provision of DA is mandatory for the central government but it is “optional” for the state, Banerjee said the increase in DA would require her government to bear an additional cost of Rs 2,400 crore. Although the central government revises the allowances on January 1 and July 1 every year, the decision is usually announced in March and September. After the upcoming DA hike, both employees and pensioners will benefit.