DA/DR from Jan, 2024 @ 50%: All central government employees and retirees receive the Dearness Allowance (DA). The Central government raises the DA of employees and pensioners twice annually. Initially in January and then again six months later in July. The dearness allowance for employees and pensioners is calculated monthly using the most recent Consumer Price Index for Industrial Workers (CPI-IW) released by the Labour Bureau. The Labor Bureau is a division of the Ministry of Labor.
The 7th Pay Commission ensures government employees are paid competitively and fairly. In addition, it examines and recommends modifications to various allowances, including housing allowance, travel allowance, and medical benefits. The Commission uses the Aykroyd formula to determine how much an employee should earn. This method considers the impact of price increases on essential products on the cost of living. Additionally, the Commission evaluates and recommends modifications to pension calculations.