According to the Press Information Bureau (PIB) press release, “The Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the release of additional installment of Dearness Allowance and Dearness Relief at the rate of 4% to Central Government employees and pensioners with effect from 01.07.2017. .2022 Based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ended June, 2022.
Central Government employees and pensioners will be entitled to higher Dearness Allowance and Dearness Relief respectively with effect from 01.07.2022.
The last time DA was increased was in March 2022. During this hike, DA was increased from 3% to 34% with effect from January 1, 2022.
Increase in DA means increase in salary of government employees.
What is Dearness Allowance/Dearness Relief?
Dearness allowance is usually given to government employees to compensate for the rising inflation. The decision announced today will put more money in the hands of government employees and pensioners.
Dearness Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust their cost of living and to protect their basic pay/pension from erosion in actual value.
The percentage of Dearness Allowance is reviewed and re-fixed/increased twice every year by the government on 1st January and 1st July. The next DA/DR increase is to take place on January 1, 2023.
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DA increased from 4% to 38%: How much will the salary of a central government employee increase?
How is DA calculated?
The hike in DA is calculated on the basic pay of a government employee. Similarly, the increase in Dearness Relief (DR) for Government pensioners and family pensioners receiving pension from the Central Government will be calculated on the basic pension amount. The basic pension amount will be mentioned in your Pension Payment Order (PPO).