1) DA for Central Government employees has been increased from 34 per cent to 38 per cent of the basic pay. The revised rate will be applicable from July 1, 2022.
2) For the purpose of computing Dearness Allowance, the term ‘Basic Pay’ in the revised pay structure means the pay drawn at the prescribed level in the Pay Matrix. 7th Pay Commission Government approved recommendations. ‘Basic Pay’ does not include any other type of pay like special pay etc.
3) It is to be noted that Dearness Allowance will continue to be a distinct element of remuneration and will be treated as pay within the purview of FR9(21).
4) The Department of Expenditure has mentioned that the fraction of 50 paise and above is included in the payment of Dearness Allowance, which may be rounded off to the next higher rupee. The office memorandum states that fractions of less than 50 paise can be ignored.
5) “The revised DA rate will also be applicable to civilian employees paid out of Defense Services Estimates and the expenditure will be chargeable to the concerned Head of Defense Services Estimates,” the department said. It further said, “Separate orders for Armed Forces personnel and Railway employees will be issued by the Ministry of Railways and the Ministry of Defence.”
Archit Gupta, Founder and CEO, Clear, said, “The increase in this allowance, especially at a time when inflation is on the rise around the world, seems like a much-needed aid to the salaried employees.”
This increase in Dearness Allowance to Central Government employees is estimated to have an additional financial impact of Rs 6,591.36 crore per annum; and Rs 4,394.24 crore in the financial year 2022-23 (i.e. for the 8-month period from July 2022 to February 2023), the Press Information Bureau said in a press release dated September 28, 2022.