Official news on the next Dearness Allowance (DA) revision for Central government employees has yet to be released, but various reports have predicted a 4 percent hike. The current DA for employees working for the Centre is 34 percent.
With the predicted growth, this percentage will rise to 38%. Based on their basic salary, the impact on their compensation will range from Rs 8,000 to Rs 27,000 per month.
According to a recent reports, the official announcement for the DA modification is much expected, and the good news might be made official for central government employees as early as Tuesday (May 31).
DA is a major part of government employees' pay, and they need to keep up with growing inflation. Under the regulations of the 7th Pay Commission, the percentage for DA is evaluated twice a year.
While the first spike occurs in January, the second often occurs in July. The AICPI is used to revise the DA (All India Consumer Price Index).
In December 2021, this inflation reference point was 125.4, before dropping 0.3 points to 125.1 in January 2022 and a 0.1 decline to 125 in February. In March, the AICPI increased by one point to 126. The April results have yet to be released, but a value of 126 or higher will almost certainly result in a 4% DA increase for central.
The DA received will increase by Rs 2,276 for a maximum basic income of Rs 56,900. The monthly DA will rise to Rs 21,622 from Rs 19,346. The predicted 4% increment will result in an annual increase of Rs 27,312.
Similarly, a monthly DA increase of Rs 720 for a minimum basic wage of Rs 18,000 will raise the allowance to Rs 6,840 from Rs 6,120. The increase would be roughly Rs 8,640 per year.
A 4 percent increase, when combined with the 3% increase in January 2022, which benefited over 47 lakh Central government employees and over 68 lakh pensioners, will be a huge boost.
