Dearness Allowance to the employees is given to reduce the burden of consumer inflation in the country. This year the rate of inflation remains around 7 percent, so the government is also preparing to increase the rate of dearness allowance in the same proportion.
New Delhi. Government employees are waiting for the Centre’s decision on dearness allowance. DA is revised twice a year, first time in January and second time in July. This decision was to come by the end of July, which has not been announced yet. However, media reports have said that this time the dearness allowance is expected to increase by 4 percent to reduce the effect of inflation.
Dearness allowance to the employees is given to reduce the burden of consumer inflation in the country. This year the rate of inflation remains around 7 percent, so the government is also preparing to increase the rate of dearness allowance in the same proportion. Recently, the Madhya Pradesh government has increased dearness allowance by 3 percent to 34 percent for its 7.5 lakh employees. The new DA will come into effect from August and the employees will start getting salary from September. The MP government has taken this decision on the basis of the previous DA hike of the Centre.
DA can be increased by 4 percent
Dearness Allowance (DA) is given to government employees, while Dearness Relief (DR) is given to pensioners. As per reports, if DA is increased above four percentage points, it will increase to 38 per cent. In January, the DA for central government employees was increased to 34 percent from the earlier 31 percent under the Seventh Pay Commission.
Earlier it was increased to 34 percent,
Before in July 2021, the Center increased the DA and DR for central government employees and pensioners from 17 percent to 28 percent respectively. In October 2021, again the central government employees increased the dearness allowance by 3 percent. Then, the dearness allowance for central government employees increased to 31 per cent, with effect from July 2021. Now from January 2022, DA and DR will be paid to the salaried people at the rate of 34 percent.
Government may issue arrears till June 2021
The government has already increased the DA of railway employees along with releasing the arrears under the Sixth Pay Commission. The allowance has been increased by 14 percent. Meanwhile, the central government withdrew three installments of dearness allowance and dearness relief for January 1, 2020. According to recent reports, the central government may also release the arrears from January 2020 to June 2021.
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