New Delhi: Government employees are awaiting the decision of the Center on dearness allowance, which is expected to increase their salary. DA is updated twice a year in January and July. The government’s decision on DA, which was to be made public at the end of July, is yet to be made public. According to media reports, this time dearness allowance is expected to increase by 4% to compensate for the effect of inflation.
Retail inflation-industrial workers are used to revise DA and DR. After remaining high for several months, retail inflation for industrial workers stood at 6.16 per cent in June 2022, up from 6.97 per cent in May 2022, but up from 5.57 per cent in June 2021 due to lower food and fuel prices. The All India CPI-IW (Consumer Price Index for Industrial Workers) rose 0.2 points to 129.2 points in June 2022. The CPI-IW in May was 129 points. Read more: Retail inflation dips to 6.71% in July on softening food prices
Dearness Allowance (DA) is paid to government employees, while Dearness Relief (DR) is paid to retirees. Read more: Gold price today, August 13: Gold rises by Rs 440, silver prices fall
According to reports, if the DA is increased by 4 percent, then it will reach 38 percent. The DA for central government employees under the Seventh Pay Commission was increased from 31% in January to 34%.
Earlier, in July 2021, the Center had increased the DA and DR for central government employees and pensioners from 17% to 28% respectively. In October 2021, again central government employees will see a 3% increase in dearness allowance. The dearness allowance for central government employees was then increased to 31%, with effect from July 20, 2021. Salaried employees will now receive DA and DR at the rate of 34% from January 2022, which is higher than 31%.
The government has already increased the DA of railway employees under the Sixth Pay Commission and has also released arrears. The allowance was increased by 14%.
Meanwhile, due to the unprecedented situation caused by the COVID-19 pandemic, the central government withheld three installments of Dearness Allowance and Dearness Relief for January 1, 2020, July 1, 2020 and January 1, 2021. As per the recent reports, the central government may also release the dues from January 2020 to June 2021.
In 2006, the central government changed the formula for calculating DA for central government employees and pensioners.
Dearness Allowance % = ((Average of All India Consumer Price Index (Base Year 2001=100) for the last 12 months -115.76/115.76)*100 for Central Government Employees.
Dearness Allowance % = ((Average of All India Consumer Price Index (Base Year 2001=100) for the last three months-126.33)/126.33)*100.