DA Hike: Before the upcoming Lok Sabha elections, over 1 crore central government employee pensioners are in for a treat with the anticipation of a significant increase in Dearness Allowance (DA). The half-yearly data released by the Labor Department suggests a probable 4% hike in DA for central employees by March. Let’s delve into the details and implications of this development.
DA Hike Projection and Timing
The revision of DA/DR rates for central government employees and pensioners occurs biannually, typically in January and July, based on the AICPI index data released by the Labor Ministry. With the AICPI index data for July to December 2023 surpassing 138 and the DA score reaching 50.28%, speculations are rife regarding a 4% increase in DA, pushing it from 46% to 50%.
Impact and Arrears
If the projected DA hike materializes, it will be effective from January to June 2024, with arrears for the months of January to March also expected. The announcement of new rates could coincide with the Lok Sabha election dates, adhering to the code of conduct regulations.
Impending 8th Pay Commission
The looming question arises with the DA nearing 50% – will the 8th Pay Commission be implemented? While the rules for DA revision were established with the formation of the 7th Pay Commission in 2016, discussions abound regarding the necessity of a new pay commission. Despite appeals from various quarters, including SB Yadav of the Confederation of Central Government Employees and Workers, the government has not indicated any plans for the formation of the 8th Pay Commission.
Government’s Response
In response to queries raised by Rajya Sabha members, the government clarified that the Union Cabinet has not considered the formation of the 8th Pay Commission. Minister of State for Finance Pankaj Chaudhary stated that there is no proposal under consideration for a new pay commission, reiterating that the recommendations of the 7th Pay Commission, implemented in 2016, remain in effect.
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