7th Pay Commission: As we have already entered January 2022, lakhs of Central government employees are looking forward to receiving their DA arrears, which have been on hold for more than 18 months. If the DA rises, the salaries of central government personnel will also increase as a consequence.
However, the amount of DA increase that will be applied in January 2022 is yet unknown. However, according to the AICPI index, the DA is predicted to rise by 3% in 2022.
Promotion of Central government employees likely in January
In addition to the DA increase, several Central government personnel are scheduled to be promoted in the New Year. According to certain sources, conversations about the fitment factor are also taking place ahead of Budget 2022, and the Centre may make a definitive decision in this regard soon.
It should be noted that a rise in the fitment factor will result in an increase in the minimum basic wage of Central government employees in 2022.
With a 3% increase in DA, the overall DA for Central government employees will be 34 percent. It means that a Central government employee earning Rs 18,000 per month will receive Rs 73,440 in annual dearness allowance.
The allowance rate had been raised from 17% to 28% by the Narendra Modi government. Later in October, the allowance rate was increased by another 3%.
For those who do not understand what is DA or Dearness Allowance? It is the cost-of-living adjustment allowance paid by the government to public sector employees as well as retirees who worked in the same sector.
Due to the COVID-19 pandemic, the finance ministry halted the DA hike in May 2020. On June 30, 2021, the halt was lifted. The Indian Pensioners' Forum, or Bharatiya Pensioners Manch (BMS), has also urged PM Modi to clear central employees' and pensioners' arrears of dearness allowance and dearness relief.
