7th Pay Commission latest news: There are strong indications that a second 4% increase in Dearness Allowance for July 2023 may be in the cards after the first round of increases for central government employees was recently announced.
After the Covid freeze, the DA hike resumed with a straight 11% increase in July 2021, bringing the total to 28%. In October 2021, another round of increases were announced, bringing DA to 31%. 2022 saw a 3 percent climb first and afterward a 4 percent climb taking the figure to 38 percent.
The DA for central government employees has increased to 42% as a result of the most recent 4% increase.
It is anticipated that the Union Cabinet could grant another 4% DA hike for July 2023 later in the year, according to the most recent reports and data from the All-India Consumer Price Index (AICPI) for the previous four months. After the forthcoming AICPI figures, it will be clearer whether central employees will receive a 3% or 4% raise.
Then again, most recent media reports guarantee that the Middle might be thinking about another equation for Dearness Remittance increment estimation. According to a recent Zee Business report, the government intends to eliminate the pay commission within the next few years and will soon implement a new formula for determining central employees’ salaries.
As part of a new rule change, employees may be allowed to change their fitment factor. According to the rules of the 7th Pay Commission, the fitment factor is currently 2.57 times. The Middle might survey and build the fitment factor, the report said citing sources.
In addition, there are two viewpoints regarding the fitment factor increase, either a rise to 3 or 3.68 from 2.57.
