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7th Pay Commission DA Hike: Good News! Govt hiked dearness allowance by 4% for central government employees, pensioners

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday announced an increase of 4 percent in Dearness Allowance (DA).The decision was taken in the Union Cabinet meeting today, Union minister Anurag Thakur said today.The current dearness allowance is 34 percent, which has now been increased by 4 percent to 38 percent.

By Priyanka Verma 
Updated Date

New Delhi: A big gift has been given by the government for the central employees. The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday announced an increase of 4 percent in Dearness Allowance (DA).The decision was taken in the Union Cabinet meeting today, Union minister Anurag Thakur said today.The current dearness allowance is 34 percent, which has now been increased by 4 percent to 38 percent.

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This decision of the government will directly benefit the existing 50 lakh central employees and 62 lakh pensioners. The increase in DA by the government will be applicable from July 1, 2022. Earlier in March 2022, the government had announced to increase DA (Mehngai Bhatta) from January. At that time the DA of central employees was increased from 31 percent to 34 percent. Now it has increased to 38 percent. According to this, the employees will get DA Arrear of two months in the salary of September.

Let us tell you that the Central Government considers the data of AICPI-IW (All India Consumer Price Index- Industrial Worker) index as the basis for increase in Dearness Allowance of lakhs of employees. The DA for July was announced on the basis of AICPI-IW data for the first half. With the index rising to 129.2 in June, the way for the DA hike to 4 percent was cleared.

The increase of 4 percent in Dearness Allowance will be applicable from July 1. On the auspicious days of Navratri, the employees will get a lot of benefit by paying it on behalf of the government. With DA being 38 percent, there will be a good jump in salary. Let us see how much will the minimum and maximum basic salary increase with 4 percent DA?

Calculation on maximum basic salary

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1. Basic Salary of Employee-  Rs 56,900
2. New Dearness Allowance (38%)-Rs.21,622/month
3. Dearness Allowance so far (34%)-Rs.19,346/month
4. By how much dearness allowance increased?- 21,622-19,346 = Rs.2260/month
5. Increase in annual salary-  2260 X12= Rs 27,120

Calculation on minimum basic salary
1. Basic Salary of Employee-  Rs 18,000
2. New Dearness Allowance (38 %)-  Rs.6840/month
3. Dearness Allowance so far (34%)-  Rs.6120/month
4. How much dearness allowance increased?- 6840-6120 = Rs.1080/month
5. Increase in annual salary-  720X12=  Rs 8640

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