7th Pay Commission latest news: Under the 7th Pay Commission, the NDA government could double the Dearness Allowance (DA) provided to central government employees. The government could, reportedly, hand out 4% DA in H1 2020 (January 2020- June 2020) to central government employees.These speculations are based on the 3-point spike in the inflation figures between July 2019 and October 2019. According to Zee Business, the salaries of the central government employees would increase in the range of Rs 720 to Rs 10,000. The hike in salaries is dependent on the pay drawn at various levels.
The DA hike will be in place from January 2020. DA is announced twice a year with its duration being from January to June and July to December every year.
These speculations are based on the 3-point spike in the inflation figures between July 2019 and October 2019. As per the report, if the AICPI (All India Consumers Price Index) remains at 325 for November and December 2019, then the DA is expected to go up to 21%. As of now, the DA rate is 17%
How does the central government announce DA?
The central government announces DA on the basis of inflation in the previous half of the year. For instance, the January-June DA will be announced on the basis of inflation from July to December in the previous year whereas July to December DA is announced on the basis of the inflation rate from January to June in the same year.