The finances of central government employees are about to get a boost. In much-anticipated good news, the Dearness Allowance (DA) hike is expected to bring in extra money starting July 1. The DA for central government employees will be 38 percent, providing relief and support at times of rising prices for essential items.
How much of a raise can central government employees expect?
In July, the Centre could raise the DA for employees in response to growing inflation. According to Zee News Hindi, a 4% increase in DA has been announced for July-August based on the All India Consumer Price Index (AICPI), which was released in March.
The AICP Index dropped in the first two months of 2022, January and February. From 125.1 in January to 125 in February, then to 126 in March, a 1 point increase. The AICP numbers for April, May, and June have yet to be released. If the index rises above 126, the government will be able to increase the DA by 4%.
How Will it Impact Your Salary?
The DA figure would rise to 38 percent from 34 percent with a 4 percent increase. Increases in the maximum and minimum basic salaries that central government employees receive in their bank accounts will be impacted by this.
For Maximum Basic Salary:
Basic salary per month: Rs 56,900
DA received (34%): Rs 19,346
DA after revision (38%): Rs 21,622
The monthly increase in DA: Rs 2,276
Annual increase (monthly increase x 12): Rs 27,312
For Minimum Basic Salary:
Basic salary per month: Rs 18,000
DA received (34%): Rs 6,120
DA after revision (38%): Rs: 6840
The monthly increase in DA: Rs 720
