7th Pay Commission: 4% DA Hike Announced in THIS State, Check Details

7th Pay Commission: The Uttarakhand government has hiked the dearness allowance (DA) of its employees under the seventh pay commission from 42 per cent per month to 46 per cent, according to an official order.

The revised DA will be applicable with effect from July 1, 2023, and arrears will be paid to beneficiaries in cash, it said.

From January 1, 2024, onwards, the revised DA will be paid to the employees along with their salaries every month, the order said.

This will apply to state government employees and regularised and full-time employees of aided educational and technical education institutes, it added.

DA Hike Expectations For Central Govt Employees

According to reports, the Centre is expected to hike dearness allowance (DA) by 4 per cent for the six months starting January 1, 2024. The reports said the announcement might be made in March 2024.

The AICPI index has reached 139.1 per cent. This might led to an increase in dearness allowance for central government employees amid rising prices.

The 4 per cent DA hike, if announced by the government, will take the dearness allowance to 50 per cent, according to the reports.

In the previous DA hike in October, the government raised dearness allowance by 4 per cent to 46 per cent, effective from July 1, 2023.

Dearness allowance is an amount given to employees as part of their salary to make up for the price rise in the economy. Whenever inflation increases, it reduces the value of a currency which, in turn, adversely affects the de facto income of the employees by hitting their purchasing power.

Dearness relief is an amount given to pensioners. Whenever DR increases, it raises the monthly pension of pensioners.

DA is given as a percentage of the basic pay, while DR is given as a percentage of the pension amount. Though the central government revises the allowances with effect from January 1 and July 1 every year, the decision is generally announced near March and September.