Employees in the central government, who have been waiting with great anticipation for the government to announce the rise in dearness allowance (DA) proposed by the 7th Pay Commission, may get some good news before Holi. Following the announcement of the All India Consumer Price Index and the presentation of the Union Budget 2022, the buzz regarding an increase in dearness allowance of up to 3% gathered even more pace.
The government’s announcement on DA increases would be based on the 7th Pay Commission’s recommendations. Central employees already receive a 31 percent DA, thus a 3 percent rise in DA would bring the overall DA to 34 percent. The Dearness Allowance is calculated by multiplying the basic income by the Dearness Allowance. According to the Dearness Allowance calculation, the government changes the DA every 6 months or so, resulting in an increase in employees’ salaries to reduce inflation. DA was raised from 28 percent to 31 percent in October of last year.
Himachal Pradesh’s state government has increased the dearness allowance by 3%. Employees who have retired in the meanwhile closed their GPF accounts, or are covered by the contributory pension scheme will be reimbursed DA arrears in cash along with their February income from July 1, 2021, to March 20, 2022.