Mumbai, December 27: Central government employees under the 7th pay commission who are eagerly awaiting to hear good news about fitment factor hike and release of DA arrears might receive some news soon. As per reports, the Centre is likely to take a decision on Dearness Allowance (DA) hike soon. And if reports are to be believed, the first DA hike of 2023 will be an improved one from that of March 2022.

This year, the Centre increased DA of central government employees under 7th CPC  twice - first in March 2022 and then in September 2022. The Centre increased the DA by 3 percent in March and by 4 percent in September, thereby taking the overall DA hike to 38 percent. At present, central government employees under 7th pay commission are receiving 38 percent DA hike. 7th Pay Commission Good News: 12% Hike in DA, DR Announced for Government Employees and Pensioners of This State.

As per various media reports, the first DA hike of 2023 is likely to repeat the figure of 4 percent which was announced around Diwali 2022. Going by reports and the Centre's recent decisions on DA hike, the next dearness allowance hike could be announced in March 2023, which is about three months from now.

Reportedly, central government employees are likely to receive 3 to 5 percent DA hike under the 7th pay commission in March 2023. However, there is no official announcement as yet on the same. If a 4 percent DA hike is approved then the DA will be raised to 42 percent, which means a huge hike for government employees. 7th Pay Commission: Centre Likely To Decide on Fitment Factor Soon, Salary of Central Government Employees May Increase.

A 4 percent DA hike would bring some much needed relief to 48 lakh government employees and 68 lakh pensioners. The Dearness Allowance will be hiked on the basis of inflation rate and the recommendations of the 7th CPC. Reports also suggest that the Ministry of Labor and Employment is most likely to replace the existing formula for DA calculation with a new formula.

(The above story first appeared on LatestLY on Dec 27, 2022 02:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).