For the second part of this year, the Dearness Allowance will be revised by the Union Cabinet very soon. On August 1, the Madhya Pradesh government increased the Dearness Allowance (DA) for the state's more than 7.5 lakh public employees from 31 to 34 percent.
Employees of the Madhya Pradesh government will begin receiving the new DA in August 2022, and they will be paid the increased amount in September.
To counterbalance the rising inflation rates since February of this year and the spike in the prices of essentials, the Union Cabinet is set to enhance the DA for all central government employees as well as pensioners.
After January, this will be DA's second revision. The DA is reportedly expected to increase by between 3 and 4%.
Updates on Upcoming DA Hikes:
In July 2021, the federal government announced a rise in DA for all of its employees in accordance with the 7th Pay Commission's recommendations. There was an increase in the DA from 17% to 28%.
The Union Cabinet agreed to a further 3% increase in DA in October 2018 for all central government employees beginning on July 1, 2021. As a result of this decision, all central government employees began earning 31% DA as of July 1, 2021.
All government employees now receive DA at a rate of 34% after the central government decided to raise it by another 3% in January 2022.
The accepted formula, which is based on the suggestions of the 7th central pay commission, was used to calculate the rise in DA. The dearness assistance (DR) was also enhanced by the same amount for retirees.
According to the cabinet notification, "basic pay" refers to the compensation derived using the matrix established by the 7th Pay Commission and excludes all other compensation, such as special compensation.
About 47.68 lakh central government employees and 68.62 lakh pensioners will benefit from the DA hikes, which are applicable to both civilian and defense service employees.
How much salary increase is expected?
According to the current DA rate of 34%, a central government employee making Rs 20,000 per month receives a DA of Rs 6,800.
If the Union Cabinet approves a 4% increase in DA as some reports predict, the employee will get another raise of 800 per month. With the DA rate increased to 38%, the monthly total will be 7,600. If the DA is increased to 38%, an employee making 20,000 per month will earn an annual benefit of 91,200.
