First DA hike in 7th Pay Commission will start from July 2016. Because the 7th CPC has neutralized the total DA paid from 1.1.2016 for the purpose of arriving Fitment Formula. In which the commission anticipated that according to CPI for Industrial Workers, the rate of Dearness Allowance to be paid from 1st January 2016 would increase 6% from 119% to 125%.
As it was expected, 6% hike has been approved by Central government. Subsequently, after the issuance of Finmin order for Payment of enhanced DA, arrears to this effect has also been paid to govt servants. Order for Payment of Dearness relief to CG Pensioners also issued by Department of Pension and Pensioners welfare on 11th April 2016.
The Decision for adding this anticipated DA to arrive Fitment Formula is a smart decision taken by 7th Pay Commission. By taking this hike into the account,the Fitment formula 2.57 was arrived. So there is no need to revise the Fitment formula on account of increase in Dearness Allowance from January 2016.
So virtually the Dearness Allowance to be revised from January 2016 will start from scratch after implementation of 7th CPC recommendations. Since the rate of DA will start from zero from 1st January 2016, the increase in expected DA from July 2016 is the First DA hike in 7th Pay Commission regime.
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