Employees in the central government expect a Dearness Allowance increase in the second half of 2022. Employees and pensioners anticipate a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) rates in response to the increase in the All-India Consumer Price index for Industrial Workers (AlCPl-lW).
If the government chooses to stick to the predicted 4% increase in DA and DR, the rate of DA/DR would increase to 38%. The Central Government has not yet made a public notification regarding the increase in the DA/DR rate. The formal announcement might not come until after the employees and pensioners have waited a little longer.
According to the Union Ministry of Finance, DA is given to central government employees to make up for the fact that growing inflation has reduced the real worth of their pay. AICPI-IW data is used to update this rate every six months. Employees and pensioners anticipate that the new DA/DR rate will be revealed soon now that the first half of this year is in the books.
In the most recent statement, the Union Minister of State for Minister stated in the Parliament that "Dearness Allowances (DA) is paid to them and the rate of DA is revised periodically every 6 months to compensate Central Government Employees for erosion in the real value of their salaries on account of inflation."
Will there be an 8th pay commission?
Meanwhile, the government has made it clear that it is not considering any proposals to form the 8th pay commission and increase the salaries and pensions of central government employees and retirees, respectively. According to the 7th Pay Commission's recommendations, the Government may make such adjustments to the payments provided to these employees and pensioners at any time.
How is the DA hike decided?
Employees and retirees of the Central Government are currently paid pensions and wages by the matrix defined by the 7th Pay Commission. Additionally, the 7th Pay Commission's recommendations are used to update the DA/DR rate.
