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HomePersonal FinanceDA Hike of Govt Employees: Government said, DA will increase on 'Basic...

DA Hike of Govt Employees: Government said, DA will increase on ‘Basic Pay’, this will be the calculation, know

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Central government employees will get the benefit of increased DA, while pensioners will get the benefit of increased Dearness Relief. It has been increased from 31 per cent to 34 per cent.


The Central Government has recently announced to increase DA for Central Government Employees and Pensioners. Central government employees will get the benefit of increased DA, while pensioners will get the benefit of increased Dearness Relief. It has been increased from 31 per cent to 34 per cent. This means that DA and Dearness Relief have been increased by 3 per cent.

This increase will be applicable from January 1, 2022.

The increase in DA and Dearness Relief will come into effect from January 1, 2022. Due to the decision of the Central Government to increase DA and Dearness Relief, about 47.68 employees of the Central Government will benefit, while 68.62 lakh pensioners will get the benefit.

DA calculation will be done only on basic pay

The point to note here is that DA is calculated on the basic pay of the employee. No other allowance is included in the calculation of DA. This means that the increased salary in the hands of central government employees will only include the increased DA on basic pay. The Department of Expenditure had issued a clarification in this regard on March 31.

Department of Expenditure issued clarification

The Department of Expenditure has said that ‘Basic Pay’ in the revised pay structure means the pay that is drawn as per the proposed level in the pay metrics. It has also said that the arrears of DA will not be received before the salary disbursement of March 2022. Separate orders will be issued for Armed Forces Personnel and Railway Employees. The Defense Ministry will issue orders for the Armed Forces. Ministry of Railways will issue orders for railway employees.

How will DA be calculated?

The method of calculation of DA for a Central Government employee is easily understood. Suppose the basic salary of an employee is Rs 18,000, then he will now get DA of Rs 6,120. Before the hike, he used to get DA of Rs 5,580. Earlier DA was 31 per cent of the basic salary. After the increase, it has become 34% of the basic salary. This means that if the basic pay of an employee is Rs 18,000, then he will get Rs 540 more DA every month.

DA arrears will get Rs 2 lakh

The DA arrears of Level-1 employees will be between Rs 11,880 to Rs 37,000. At the same time, Level-13 employees will get Rs 1,44,200 to Rs 2,18,200 as DA arrears. DA is given to government employees and public sector employees and pensioners. It is given to help the employees in increasing expenses.

DA arrears will get Rs 2 lakh

The DA arrears of Level-1 employees will be between Rs 11,880 to Rs 37,000. At the same time, Level-13 employees will get Rs 1,44,200 to Rs 2,18,200 as DA arrears. DA is given to government employees and public sector employees and pensioners. It is given to help the employees in increasing expenses.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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