The government has increased the Dearness Allowance (DA) component for central government employees from 4% to 38% (from 34% earlier) with effect from July 1, 2022. this is the second increase And This year by the government, which was due. The first hike in DA was announced on March 30, 2022 (with effect from January 1, 2022). except DA increaseThe government has also increased Dearness Relief (DR) for pensioners with the same percentage.

A tweet by PIB said: Cabinet approved release of additional installment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners with effect from 01.07.

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4% hike in dearness allowance (DA) for central government employees, pensioners

Increase in DA means increase in salary of government employees. So, by how much will the salary of a central government employee increase in real monetary terms after the 4% hike in DA?

How much will the monthly salary increase after increasing DA

The hike in DA is calculated on the basic pay of a government employee.

Explain that the basic salary of a junior level employee of the Central Government is Rs 20,000 per month. Earlier, the central government employee was getting DA of Rs 6,800 per month at the rate of 34 per cent. Now after increasing it to 38%, the same government employee will get DA of Rs 7,600 per month. Thus due to increase in DA his salary has increased by Rs.800 per month.

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).

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.

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.