Central government employees are likely to get updates about their future dearness allowance (DA) on 31st May. The government may give an update on how much DA will be increased by the end of July. DA is revised twice a year – January and July. Now, since retail inflation is very high, there are high chances of a hike in dearness allowance, as per reports.
In January, the DA for central government employees under the Seventh Pay Commission was increased to 34 per cent from the earlier 31 per cent. It has been revised on the basis of All India Consumer Price Index (AICPI). Now, since the retail inflation is very high, the chances of an increase in dearness allowance are high. CPI-based inflation stood at an eight-year high of 7.79 per cent in April.
Earlier, in July 2021, the Center had increased dearness allowance and dearness relief for central government employees and pensioners from 17 per cent to 28 per cent respectively. Again in October 2021, central government employees saw a hike of 3 per cent in dearness allowance. Then, the dearness allowance for central government employees increased to 31 per cent, with effect from July 2021. Now from January 2022, DA and DR will be paid to the salaried at the rate of 34 per cent, which was increasing at the earlier rate. 31 percent.
Dearness Allowance (DA) is given to government employees, while Dearness Relief (DR) is given to pensioners.
The central government had stopped three installments of dearness allowance and dearness relief for January 1, 2020; July 1, 2020; and in view of the unprecedented situation arising out of the COVID-19 pandemic on January 1, 2021. According to the report a few days ago, the Central Government clarified that the arrears of General Dearness Allowance from January 2020 to June 2021 will not be released yet.
recently, Central government increased dearness allowance for railway employees Along with the release of arrears under the Sixth Pay Commission. According to an official notification, the allowance has been increased by 14 percent. “The rate of DA (Dearness Allowance) admissible to the above category of railway employees will be increased from existing 189 per cent to 196 per cent and from 196 per cent to 203 per cent with effect from July 1, 2021. From January 1, 2022,” the Railway Ministry said in a notification earlier this month.
DA Update: How Dearness Allowance is calculated
The central government changed the formula for calculating DA for central government employees and pensioners in 2006.
For Central Government employees: Dearness Allowance % = ((Average of All India Consumer Price Index (Base Year 2001=100) for the last 12 months -115.76/115.76)*100.
For Central Public Sector Employees: Dearness Allowance % = ((Average of All India Consumer Price Index (Base Year 2001=100) for the last 3 months-126.33)/126.33)*100.
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