Diwali gift to central employees: 3% DA increase may be announced in cabinet meeting

Central employees can get a big gift before Diwali. An announcement to increase the dearness allowance by 3 percent can be made in the meeting of the Union Cabinet going to be held today. The Gati Shakti project, which was launched a few days ago, can also get the approval of the cabinet.

DA rate is increased twice a year

The rate of Dearness Allowance (DA) under the Seventh Pay Commission is usually increased twice every year. However, the Center has so far increased the DA rate only once. Therefore, the Central Government employees are expecting a hike in the DA rate under the 7th Pay Commission. Central government employees currently get 28% of their basic pay as DA under the 7th Pay Commission. Several reports say that the DA rate may go up by 3%.

DA hike claims in many media reports

A Moneycontrol report recently said that the DA rate may be hiked by 3% before Diwali. Diwali will be celebrated in the first week of November. Another report by DNA, citing June data from the India Consumer Price Index (AICPI), said a 3% hike is more likely. The AICPI had reached 121.7 points in June 2021.

31% DA of basic pay will be available after the hike

According to the report, the dearness allowance will be 31.18%, but the DA is calculated in the round figure. Hence, there is a high probability of a 3% hike in the DA rate. The government has neither denied nor confirmed these reports. If the rate of DA is increased by 3%, then the Central Government employees under the 7th Pay Commission will get 31% of their basic pay as DA.