7th Pay Commission: Dearness Allowance hike – Will it jump to 46%? What new AICPI-IW data hints at
7th Pay Commission Dearness Allowance Hike Latest News (August 2, 2023): The month of August is here and the Central Government Employees are eagerly waiting for the announcement of the new Dearness Allowance rate. While the Government is expected to announce the new DA rate by next month, we look at the latest AICPI-IW data which serves as a deciding factor in DA rate calculation.
The Labour Bureau recently released the All India CPI-IW data for the month of June 2023. Compared to the previous month (May 2023), the index in June increased by 1.7% to 136.4. On a one-month percentage change, the AICPI-IW number increased by 1.26% with respect to the previous month (May).
According to a statement shared by the Labour Bureau, the maximum upward pressure in the current index came from inflation in food and beverages which contributed 1.62 percentage points to the total change.
“At item level, Rice, Wheat, Atta, Arhar Dal, moong Dal, Fish Fresh, Poultry Chicken, Egg-Hen, Apple, Banana, Brinjal, Carrot, Ginger, Cauliflower, Chilli Green, Potato, Onion, Tomato, Cumin seed/Jira, Supari, Casual Wear, Canvas Shoes, Utensil, Medicine ayurvedic, etc. are responsible for the rise in index,” the Labour Bureau said in a press release.
“However, this increase was largely checked by Mustard Oil, Palm Oil, Sunflower Oil, Coconut Oil, Lemon, Mango, Kerosene Oil etc. putting downward pressure in the index,” it added.
The DA and Dearness Relief (DR) rates for Central Government Employees and pensioners are decided by the Union Government on the basis of the All India CPI-IW data.
The current rate of DA/DR provided to employees and pensioners is 42% of basic pay/pension. The latest AICPI-IW data indicate that the DA/DR rate may be increased
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