As the Central Government has announced the hike in DA in recent days, the Uttar Pradesh government is getting ready to announce the very good news for its government employees. The 7th Pay commission has advised the state government for an increase in DA and DR which is being done twice every year, with the first increment starting on January 1st and the second one is all set to start from July 1st. Here is all you need to know about the latest updates.

Central government increased the DA

As the government has all the responsibility to their employees, they increase their DA (Dearness Allowance) and DR (Dearness Relief) from time to time. In a recent update on March 24, 2023, the Central government increased the DA of their employees as of 1st January 2023 by 4%, which resulted in a total allowance of 38% to 42% for Central Government employees. Now the Uttar Pradesh government is preparing all the data and calculating to match the level of which the central government is giving 42%, this will result in an additional cost of 200 crores per month.

As of now Central employees are getting 42% DA which is likely to increase by July 1st 2023, as per the recommendations of the 7th pay commission.

The Consumer Price Index (CPI) IW has recently increased by 0.5 points, which means that the DA has increased by 1% for central government employees. As of now, employees receive a 43.08% DA, which will possibly be changed on July 1, 2023.

What experts say ??

According to the experts of inflation, inflation is increasing rapidly, and it can result in a 4% increase in DA. However, the 7th pay commission recommends only 1% increase, which will take effect on July 1st, 2023. The CPI IW index report suggests that even if the index does not see an increase in the coming months, employees can still be happy as their DA will surely get an increase of 3%. This may result in an increase in the DA from 42% to 45% from July 1, 2023.

Conclusion

What conclusion says is that, the DA of central and Uttar Pradesh state government employees will get an increase of 4% if the CPI IW index sees a jump and if not employees will get an increase of 3% depending on inflation. Increment of DA will swing between 3 and 4% as it depends on Inflation rate.