Employees and pensioners of the Central Government currently receive Dearness Allowance (DA) and Dearness Relief (DR) at a rate of 34% each. Now they are expecting that the Union Cabinet will shortly announce an increase in the DA and DR rates for both Central Government employees and pensioners.
In order to make up for the loss of monthly salary/pension money brought on by growing inflation, the government adjusts DA/DR. Every two years, a revision is conducted.
Employees and pensioners have high expectations for the DA/DR raise because it has been postponed since July 2022. The government's official fact-checker recently exposed the false information being spread on one social media platform that claimed the government had formally increased the DA rate.
Decisions about DA/DR rate increases are typically made at the Union Cabinet meeting, which is chaired by the Prime Minister.
After the Union Cabinet approved the release of an additional installment of DA to Central Government employees and DR to Central Government pensioners with effect from 01-01-2022, the most recent rate of 34% DA/DR was announced in March 2022. The March ruling increased the DA/DR rate by 3% over the 31% rate at the time. A percentage of the basic pay and pension is used to compute the DA rate.
Additionally, the revised DA/DR rate is determined using the recognized methodology suggested by the 7th Central Pay Commission.
DA increased in These States:
In the meantime, a few states, including Gujarat, Maharashtra, Tamil Nadu, and Chhattisgarh, announced DA increases in August in an effort to bring their employees' take-home pay in par with that of the Central Government Employees.
