Mumbai, December 24: Central government employees under the 7th pay commission are in for some good news as the Centre is likely to take a decision on dearness allowance (DA) hike soon. As per reports, the Centre could announce the next DA hike as early as March 2023, however, there has been no official announcement on the same.

While government employees will get a DA hike, the Centre is also expected to raise the dearness relief (DR) of pensioners. Every year, the Centre increases the DA and DR of Central government employees and pensioner twice a year - first in January and then in July. However, this year, DA was increased in March 2022 and then six months later in September 2022. 7th Pay Commission: Decision on Fitment Factor Hike Likely Before Budget 2023, Check Latest News Updates Here.

As per various media reports, the Central government is likely to increase the DA of its employees by 3 to 5 percent DA hike in March 2023, however, an official confirmation is awaited. It must be noted that the DA and DR hike will be based on several factors including inflation rate and the recommendations of the 7th CPC.

Meanwhile, reports also suggest that the existing formula used to calculate DA for central government will be replaced with new one. As per reports, the formula has been changed by the Ministry of Labor and Employment. Reportedly, the Centre is going to change the base year for DA hike. The old base year of 1963-65 will be replaced with new series and year 2016, under the 7th CPC. 7th Pay Commission Good News: After 4% DA Raise, Centre To Take Decision on HRA Hike Soon; Here’s How Much Increase Is Expected.

Reports also suggest that a decision regarding DA hike and the change in formula of calculating DA will be taken before Holi festival next year. Several other decisions on release of DA arrears, increasing Fitment Factor and raising HRA of central government employees are also expected to be taken before the budget in 2023.

(The above story first appeared on LatestLY on Dec 24, 2022 02:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).