New Delhi, October 1: The central government is likely to announce a DA hike for its employees between Navratri and Diwali, according to reports. The DA hike, once announced, will be effective from July 1, 2023. Though earlier reports suggested a 3 per cent DA hike, the number might increase.

Zee News reported that the formula for DA calculation based on the latest Consumer Price Index for Industrial Workers (CPI-IW), a 4 percent hike is expected for the central government employees. 7th Pay Commission DA Hike News Update: Centre May Increase Dearness Allowance of Central Govt Employees in September, Say Reports.

In the last hike in March 2023, the DA was increased by 4 per cent to 42 per cent. Recently, various state governments, including Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh, increased dearness allowance for their state government employees. 7th Pay Commission: Centre To Release 18-Month DA Arrears After Dearness Allowance Hike? Check Latest News Update Here.

Government workers receive DA, whilst retirees receive DR. In January and July of each year, DA and DR are raised. More than one crore retirees and employees of the central government currently receive a 42 percent dearness payment.

The DA was raised by 4 percent to 42 percent in the most recent increment in March 2023. According to a number of reports, the next DA increase will likely be 4 percent given the current inflation rate.

The DA and DR hike is decided based on the percentage increase in 12 monthly average of the All India Consumer Price Index (AICPI) for the period ending June 2022. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September.

(The above story first appeared on LatestLY on Oct 01, 2023 05:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).