In recent developments, several state administrations, including those of Madhya Pradesh, Odisha, Karnataka, Jharkhand, and Himachal Pradesh, have taken measures to augment the dearness allowance for their respective state government employees.

Update on the 7th Pay Commission: The Central government, led by Prime Minister Narendra Modi, is reportedly preparing to reveal an increase in the Dearness Allowance (DA) for all Central government employees and retirees. According to credible sources, this announcement is anticipated to occur between the Navratri and Diwali festivals, and the revised DA will take effect from July 1, 2023. It is noteworthy that earlier reports had suggested a 3 percent hike in the DA for central employees, but the final figure may surpass this initial estimation.

As per a recent report by the Economic Times, the DA calculation relies on the latest Consumer Price Index for Industrial Workers (CPI-IW), indicating a projected 4 percent upswing for Central government employees.

In the most recent adjustment implemented in March 2023, the DA experienced a 4 percent increase, bringing it to a cumulative total of 42 percent. Simultaneously, various state governments, including Madhya Pradesh, Odisha, Karnataka, Jharkhand, and Himachal Pradesh, have also raised the dearness allowance for their state government employees.

In a statement made last month, Shiva Gopal Mishra, the General Secretary of the All India Railwaymen Federation, expressed their demand for a four-percentage-point increase in dearness allowance. However, it appears that the actual hike will be slightly over three percentage points, resulting in a projected 45 percent DA.

The calculation of DA follows a specific formula based on the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) up to June 2022. Traditionally, the Central government revises these allowances on January 1 and July 1 each year, with official announcements made in March and September.

It is worth noting that in 2006, the Central government revised the formula used to calculate DA and DR (Dearness Relief) for central government employees and pensioners.

For Dearness Allowance Percentage: ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months - 115.76) / 115.76) x 100.

For Central public sector employees: ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months - 126.33) / 126.33) x 100