Dearness Allowance (DA) hike
7th Pay Commission: At 46% DA Hike is CONFIRMED. The AICPI Index that will Increase the DA is detailed here.

The AICPI Index figure for the month of June has arrived, and this information will be used to calculate Dearness Allowance and set the basis for determining the DA amount under the 7th Pay Commission.
7th Pay Commission Latest Updates
There is good news for the lakh of central government employees who have been waiting for the declaration of the Dearness Allowance (DA) hike.
The AICPI Index data computation is what has led to the positive prediction. The AICPI Index figure for the month of June will serve as the final piece of information used to calculate Dearness Allowance and the basis for establishing the DA amount.
The government has released the AICPI index data for June 2023, which demonstrates a significant increase in the index. In contrast to the index number in May, which was 134.7 points, the June index hit 136.4 points. There has been an overall gain of 1.7 points in June. The total DA score was 45.58 percent in May, but based on AICPI index data, that number will rise to 46.24 percent in June 2023.
DA Possibly Increase To 46%
There is widespread conjecture in the media that central personnel will now receive Dearness Allowance at a rate of 46%. According to sources, the administration will make an announcement about it in the month of September. To increase DA, the acknowledged formula, which is based on the suggestions of the 7th Central Pay Commission, must be used.
Employees of the central government have their Dearness Allowance updated twice a year. While the second is offered from July to December, the first is offered from January to June.
Possibility of a DA Hike in September
It should be emphasised that employees will continue to receive DA payments at the rate of 42% until the government announces new DA rates. However, the higher amount will be paid in addition to the arrears if the government declares a DA rise. The central government employees whose salaries are paid under the 7th Pay Commission would benefit from this rise in dearness allowance. This raise will directly help more than 1 crore central employees and pensioners in total.
Dearness Allowance Hike March 2023
You may remember that the Union Cabinet, led by Prime Minister Narendra Modi, approved the disbursement of an additional Dearness Allowance instalment to Central Government employees and Dearness Relief payment to Pensioners with effect from January 1, 2023. To account for price increases, the additional instalment will increase by 4% over the current rate of 38% of the Basic Pay/Pension. The total annual impact of Dearness Allowance and Dearness Relief on the exchequer would be Rs.12,815.60 crore.
About 47.58 lakh Central Government employees and 69.76 lakh pensioners will benefit from this.