Dearness Allowance (DA): Govt. Employees’ Salary Can Hike Upto 38%

The updated Dearness Allowance (DA) & Dearness Relief (DA) rates for Central Government Employees and Pensioners, are anticipated to be released by the Central Government soon.

According to ongoing media reports, central government employees who have been waiting for the government to release the Dearness Allowance may receive some good news on the auspicious day of Navratri, or September 28, this year. 

However, the administration hasn’t yet made any official announcements regarding the anticipated date.

According to recent media reports, the Dearness Allowance for employees may rise by 4%. This implies that the entire DA might reach 38%. 

The June All-India CPI-IW suggests an increase in DA this month. The receivables for the months of July & August may also be given to employees in addition to the increased Dearness allowance.

Employees of the central government have their Dearness Allowance updated twice a year. While the second is offered from July to December, the first is offered from January to June.

The All-India CPI-IW increased by 1.7 points to 127.7 in April 2022. The 1-month percentage change rose by 1.35 % to the 0.42 % spike between the same months a year before, citing statistics from the Ministry of Labor & Employment. 

The most recent ministry reports indicate that the AICPI readings for May are 129. The June AICP Index provides a solid signal that the DA would be higher in the interim. The AICPI numbers for June are 129.

The first rise in the dearness allowance for 2022 was announced in March. In December 2021, the AICPI score was 125.4. 

But it decreased by 0.3 points to 125.1 in January 2022. The All-India CPI-IW fell 0.1 points to 125.0 in February 2022. 

It decreased by 0.08 % from the previous month in terms of a 1-month percentage change, as opposed to rising by 0.68 % between equivalent months a year earlier. 

The month of March saw an increase of 1 point. The AICPI index numbers for March were 126.

You might remember that the Dearness Allowance (DA) and Dearness Relief (DR) were enhanced by the Union Cabinet on March 30 to reflect the price hike, which benefited more than 1.16 crore central government employees and retirees. The increases were between 3% and 34%.

On January 1, 2022, the additional payment will become payable. The rise is in accordance with the approved formula, which was created using the 7th Central Pay Commission’s recommendations.