DA hike from July 2022: Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners are likely to be hiked again. According to media reports, the hike will be announced early next month and will be effective from July 1.
The hike in Dearness Linked Allowance will lead to an increase in the salaries of central government employees and pensioners.
DA and DR are usually revised by the government in January and July. DA and DR are part of salary and pension (calculated as a specific percentage of basic pay/pension, which is then added to basic pay/pension) paid to employees and pensioners.
The hike in DA and DR will come as a big relief for various categories of central government employees amid skyrocketing inflation.
According to labor ministry data, about 1.15 crore central government employees and pensioners will benefit from this decision. Once the Center amends the DA and DR, the states across the country follow it up by giving benefits to their employees and pensioners.
The government believes that the extra money in the hands of employees and pensioners will help people meet their expenses amid rising prices, as there has been a manifold jump in consumption demand after the pandemic.
Notably, the government had not increased the DA and DR for 1.5 years due to the pandemic. The government had put on hold the DA hike from January 2020 to June 30, 2021, to divert funds to fight the pandemic.
The DA hike resumed in July when the government announced a massive hike from 17% to 28%. Later in October, the DA was again increased from 3% to 31%. The allowance was increased to 34% in January this year.