7th Pay Commission: The Labour ministry on Monday will announce the AICPI index and the Central government will review the Dearness Allowance(DA), Fitment factor, dearness relief (DR), DA arrear and other increase in the salary of government employees on the basis of AICPI index.

This is second time in the year 2023 that the government is going to hike DA. Presently the employees are getting 42 % DA. After this, it will be cleared that by what percentage will the dearness allowance (DA Hike) of central employees and dearness relief (DR Hike) of pensioners will increase.

AICPI Index Factor

It is to inform that the Central government reviews and increases the DA and DR of pensioners every 6 months on the basis of AICPI index released by the Ministry of Labour. On the basis of this, the first hike is applicable from the month of January and the second from the month of July.

Dearness Allowance for January is announced around Holi. Out of the six months of AICPI index, the data for five months has come so far, while the AICPI data for the month of June is awaited.

Based on the figures so far, it is expected that there may be an increase of 4 per cent in DA. However, it will be almost clear only after the official announcement that how much the dearness allowance of the employees will increase.

4% DA hike

If DA and DR is increased by 4 per cent then, DA and DR will be increased to 46 per cent from 42 %. It is also noted that, the central government had increased the dearness allowance by 4 per cent near the Holi and it was implemented from the maonth of January. It was increased from 38 per cent to 42 percent. This will directly benefit about 47 lakh central employees and 68 lakh pensioners.