During the auspicious month of Navratri, the Central Government employees who have long awaited for the government to announce a Dearness Allowance (DA) hike may receive some good news.
According to sources the big announcement may be made around Navratri. Media reports have consistently stated that the staff may hear the good news by this month itself. However, the government hasn't yet publicly announced the expected date.
According to recent media sources, the employees' Dearness Allowance may increase by 4%. This suggests that the overall DA might be as high as 38%. A rise in DA this month is suggested by the June All-India CPI-IW. Employees may also get arrears for the months of July and August in addition to the increase in the Dearness allowance.
Employees of the central government have their Dearness Allowance updated twice a year. While the second is offered from July to December, the first is offered from January to June.
In April 2022, the All-India CPI-IW increased by 1.7 points to 127.7. According to data from the Ministry of Labour & Employment, the 1-month percentage change climbed by 1.35 percent compared to the 0.42 percent increase between the same months a year before. According to the most recent government statistics, the AICPI numbers for May are 129. In the meanwhile, the June AICP Index gives a strong indication that the DA would be higher. The June AICPI numbers are 129.
In March, the first dearness allowance increase for the year 2022 was announced. The AICPI value in December 2021 was 125.4. But it dropped to 125.1 in January 2022, a 0.3-point fall. In February 2022, the All-India CPI-IW dropped 0.1 points to 125.0. In terms of a 1-month percentage change, it fell by 0.08 percent from the previous month, compared to a gain of 0.68 percent between comparable months a year earlier. There was an increase of 1 point during the month of March. The March AICPI index values were 126.
You may recall that the Union Cabinet increased the Dearness Allowance (DA) and Dearness Relief (DR) on March 30 to account for the price increase, benefiting more than 1.16 crore central government employees and pensioners. The increases ranged from 3% to 34%.
The extra payment will start to be due on January 1, 2022. The hike follows the approved formula, which was developed based on the suggestions made by the 7th Central Pay Commission.
