The central government employees’ demand for Dearness Allowance (DA) hike may come to an end this month. According to reports, the salaries of central government officials will increase by up to 40,000 rupees in the upcoming round of revisions.
The AICPI data has also fuelled rumors that the DA will be raised more than initially anticipated. Initial reports had indicated a 4 or 5 percent increase, but current predictions place the figure at 6 percent. With a 6 percent increase, the existing 34 percent DA rate for central government employees will increase to 40%.
When is the DA hike expected?
According to reports, the announcement of the DA hike may occur toward the end of July. According to some earlier rumors, the date was July 31, which meant that employees of the central government would receive good news and additional funds in August.
How will the AICPI pattern affect the DA hike?
Since February of this year, the All-India Consumer Price Index (AICPI) data has been rising. AICPI increased significantly in May, rising 1.3 points to 129. According to sources, even if the number for June does not increase, a rise of 6% is likely.
Govt employees can except how much salary increase after the DA hike?
For employees earning a base pay of Rs 56,900, a 6% rise would mean an increase of nearly Rs 3,414 per month. The payment will be Rs 22,760 as opposed to the present DA received of Rs 19,346 per month on a 34 percent figure. The overall wage rises for the year is Rs 40,968.
Similar to this, the increase in DA for a basic wage of Rs 18,000 will be Rs 1,080 per month, bringing the monthly DA payment from Rs 6,120 to Rs 7,200. If the DA were to increase by 6%, the total increase would be Rs 12,960 per year.
One-time Dearness Allowance:
There is also discussion surrounding the return of the dearness allowance, which has been suspended owing to the Covid-19 outbreak for almost two years. The government is considering providing DA totalling up to Rs 2 lakh. Due to the epidemic, the Finance Ministry halted the DA increase in May 2020 and didn't resume it until June 30, 2021.
