7th Pay Commission: Govt Likely To Hike DA By 3-4% From July 1
On the heels of peaceful protests seeking a hike in deerness allowance for state government employees in the state of West Bengal and the perpetual delay in hearing the case on dearness allowance at the Supreme Court, media reports have emerged stating that the government may hike the dearness allowance for central government employees by 4 percent.
It is pertinent to note that the seventh pay commission recommends a hike in DA twice a year to adjust the cost of living and to protect their basic pay from erosion in the real value on account of inflation.
Now when it comes to the rate of DA, there exists a dichotomy between some states and the central government. While states like Rajasthan and Haryana announced a 4 percent hike in DA earlier this year, the rate of DA allowance in a state like West Bengal stands at 36 percent of basic pay while DA for central government employees at 42 percent of basic salary.
The change in the rate of DA operates retrospectively. It remains to be seen if the central government releases a notification with a hike in DA in the month of July as per the recommendation of the seventh pay commission.
