DA, DR hike of 2% likely before 8th Pay Commission setup: Reports

The dearness allowance for central government employees and dearness relief for pensioners is expected to be increased by 2% before the formation of the highly anticipated 8th Pay Commission, according to two major staff forums.

The DA and DR are aimed at offsetting the impact of inflation. The hikes are usually announced in March and October and implemented retrospectively from January and July, respectively. The 2% hike is based on the ongoing discussions and expectations from various government employee unions.

However, the government has yet to make an official announcement regarding the hike.

Here’s a breakdown of the situation:

1. Current DA and Upcoming Hike: As of the last revision, the DA for central government employees and pensioners stood at 42% of the basic pay. Typically, DA is revised twice a year—on January 1st and July 1st—based on the Consumer Price Index (CPI) and inflationary trends. The unions have been pushing for an increase due to inflationary pressures, with some speculating a 2% DA hike in the coming months before the establishment of the 8th Pay Commission.

2. Role of the 8th Pay Commission: The 7th Pay Commission, which was set up in 2014, was expected to undergo a review by the government around 2026. However, some unions are advocating for a revision before this, citing rising costs of living and inflation. The expectation is that the government might announce a DA increase ahead of this review to ease financial burdens on employees.

3. Unions’ Demand: Various government employees' unions have been actively lobbying for the government to announce a hike in DA, especially since inflation and economic challenges continue to rise. The unions’ primary demand has been to adjust the DA to better align with the cost of living.

4. Government’s Response: While the government has traditionally been open to revising DA periodically, it has not provided clear indications of setting up the 8th Pay Commission before 2026 or offering a hike before then.

While the 2% DA hike remains an expectation within certain circles, there is no official confirmation as of now regarding its implementation before the 8th Pay Commission setup. Further announcements may come based on inflation data and political considerations.