Delhi, January 9: Central government employees who were expecting 5 percent Dearness Allowance (DA Hike) on basis of 7th pay commission in the coming months should be disappointed after the recent All-India Consumer Price Index (AICPI) statistics were released. The decision to increase Dearness Allowance for government employees is made according to the AICPI.

Due to the rising inflation, a DA increase of upto 5 percent on 7th pay commission recommendations was expected. But the increase may now be lower. It can be considered a serious setback for the tens of thousands of central government workers and retirees who rely on DA and DR payments to lessen the impact of rising costs. 7th Pay Commission: Central Government Employees to Get 4% DA Hike Before Republic Day 2023? Check Latest News Updates Here

Central government employees expected that the first round of DA hike in 2023 would surpass the DA figure of 2022. The AICPI index kept rising from March to October 2022. However, the AICPI index has stabilised in November 2022 instead of keeping up with the upward trend. AICPI stays put at 132.5 from October to November 2022. Now, all eyes will be on the AICPI Index for December 2022. 7th Pay Commission: Increase in Fitment Factor, DA Hike Likely in January For Central Government Employees? Check Latest Updates

According to the regulations of the 7th Pay Commission, central government employees cannot expect a larger DA raise than in 2022 without a spike in the AICPI data.

According to reports in DNAIndia, it seems doubtful that the AICPI index value would hit 133.5 in December 2022. In such a case, central personnel could have to settle for a 3 percent DA increase rather than the anticipated 4 percent increase.

First DA hike of the year 2023 is expected in coming months. Dearness allowance (DA) and dearness relief (DR) are revised twice a year, effective January 1 and July 1.

(The above story first appeared on LatestLY on Jan 09, 2023 02:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).