The dearness allowance (DA) for central government employees and retirees will increase by 4%, according to a proposal agreed in the Union Cabinet meeting chaired by Prime Minister Narendra Modi.
The dearness allowance for central government employees was increased twice this year. The government declared a 3 percent rise in DA in March 2022. The price rise took effect on January 1st, 2022.
The increase in DA will help central government workers, central government pensioners, and family pensioners receive central government pensions.
How Much Salary will You Get?
Employee salaries will also be affected by the 4% increase in DA. This means with a 4 percent DA hike, people who previously received Rs 50,000/month in salary and Rs 15,000/month in basic pay will now receive Rs 5,700/month, or 38% of the basic wage (Rs 600 increase).
The total cost of Dearness Allowance and Dearness Relief on the exchequer would be in the range of Rs. 12,852.56 billion per year and Rs. 8,568.36 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).
The increase in the DA is based on the percentage growth in the All-India Consumer Price Index for the 12-month average for the period ending June 2022.
Every year on January 1 and July 1, the central government updates the allowances, but the decision is often published in March and September.
