Dearness Allowance For Central Govt Employees Likely To Rise

Dearness Allowance is set to be revised by the Union Cabinet for the second half of this year. On August 1, the Madhya Pradesh government increased the DA for approximately 7.5 lakh government employees in the state from 31% to 34%.

The new DA for Madhya Pradesh government employees will take effect in August 2022, with the personnel receiving the increased amount in their September salary. The government has decided to bring the DA up to speed with the national government.

The Union Cabinet is expected to announce its Dearness Allowance (DA) decision for the second half of the year. The Cabinet is set to raise the DA for all central government employees and retirees to account for rising inflation rates and a spike in the prices of vital commodities since February of this year. This will be the second DA adjustment since January.

According to sources, the DA would be raised between 3% and 4%. According to the recommendations of the 7th Pay Commission, the central government announced a raise in DA for all employees in July 2021.
The DA was raised from 17% to a whopping 28%.

The Union Cabinet approved another 3% increase in DA for all central government employees from July 1, 2021 in October of last year. Following this ruling, all central government employees began getting 31% DA on July 1, 2021. The central government planned to increase the DA by another 3% in January 2022, bringing the total DA to 34% for all government employees.

The DA rise was made in accordance with the approved methodology, which is based on the recommendations of the 7th Central Pay Commission. The dearness relief (DR) for retirees was also enhanced by the same amount.

According to the cabinet announcement, the term "basic pay" refers to compensation calculated using the 7th pay commission matrix and excludes any other sort of pay, such as special pay. DA increases benefit about 47.68 lakh central government employees and 68.62 lakh pensioners, and are applicable to both civilian and military employees.