7th Pay Commission Dearness Allowance (DA) Hike Latest News Update (26 August 2022): The Central Government has not yet officially cleared any proposal for Dearness Allowance (DA) hike effective from 01 July 2022. Any report claiming a DA hike of 4% for the Central Government Employees is fake, according to an official statement of the Government.
Central Government’s official fact-checker, PIB Fact Check, has said that a fake order circulating on WhatsApp is claiming that an additional instalment of DA will be effective from 01 July 2022. The DA hike announcement is made by the Department of Expenditure (DOE). It has not issued any such order.
What the fake letter claims
The fake news circulating on social media claims that the “Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 34% to 38% of the Basic Pay with effect from 1st July 2022”. It further claims that the payment of arrears of Dearness Allowance will be disbursed along with the September 2022 salary.
DA Hike expectation
Central Government Employees are expecting a 4% hike in the current DA rate. if the Government approves this demand then the applicable DA rate for such employees would become 38% of the basic pay. Central Government pensioners are also hoping for a 4% hike in the Dearness Relief (DR) rate provided to them. These allowances support employees and pensioners in facing the erosion of the value of their monthly salary/pension wealth due to rising inflation.
The Basic Pay used for the computation of DA is based on recommendations of the 7th Central Pay Commission (7th CPC).
No 8th Pay Commission
The Government recently clarified that it is not considering any proposal to constitute the 8th Pay Commission to revise salaries and pensions. The Government said that the provisions of the 7th CPC allow revision of salaries and pensions at any time as per the requirement. Therefore it may not be necessary to constitute another pay commission.