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HomePersonal FinanceGood News for Employees! Dearness allowance will increase soon, salary will increase...

Good News for Employees! Dearness allowance will increase soon, salary will increase till 91200, see calculation

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If DA increases by 4%, then this total dearness allowance will reach 38%. This can be implemented from July 1, 2022, in which case arrears of 2 months will also be available. If the same increases by 5% then it will become 39 percent.


Central employees and pensioners (Central employees DA Hike) are going to get the gift of Rakshabandhan soon. In view of the rising inflation in the country, the Modi government at the Center may soon announce an increase in dearness allowance and dearness relief for the second half. After the release of the June data of the AICPI index, it is believed that the DA of the employees will increase by 4 to 5%. This will benefit more than 47.68 lakh central employees and more than 68.52 lakh pensioners.

In fact, under the rules of the Seventh Pay Commission, the central government revises the dearness allowance and dearness relief rate of central employees twice in a financial year. Since dearness allowance depends on the AICPI-IW Index, the Ministry of Labor and Employment has released the figures from January to June 2022, which has seen an increase. Talking about the data for June, the All India Consumer Price Index was compiled at a level of 129.2 points, increasing by 0.2 points, in such a situation, an increase of 4 to 5% DA is believed to be fixed.

It can be implemented from July 1, this will see a big jump in salary. Earlier there was news that it would be announced in the cabinet meeting to be chaired by PM Narendra Modi on August 3, but it did not happen. But now it is expected that after reviewing the data, the Modi government can give new DA to the employees before Raksha Bandhan in August. At present, the total dearness allowance of central employees is 34 percent, it is likely to increase by 5 percent, although at present only 31 percent DA is being given in most of the states.

What is dearness allowance

To provide relief amid rising inflation, dearness allowance was given to government employees by adding them to the salary. The central government revises the dearness allowance twice a year. Usually DA revision takes place twice in March and September. The new rate is applicable from January and July. For this, the Central Government revises it from time to time keeping in mind the retail inflation rate and pensioners are also given this relief in the form of DR or Dearness Relief.

Understand the math of salary increase on dearness allowance like this

  • If DA increases by 4%, then this total dearness allowance will reach 38%. This can be implemented from July 1, 2022, in which case arrears of 2 months will also be available.
  • If the same increases by 5% then it will become 39 percent.
  • If the central government increases the DA by 4%, then the employee who is getting the basic Rs 30,000 at present will get the total dearness allowance of Rs 11,400 if the DA is 38%. That is, the salary of the employee will directly increase by Rs 1,200 every month and a total of Rs 14,400 more salary will be received in a year.
  • If the basic salary of a central employee is Rs 20,000 per month, then at the current rate of 34 per cent, he is getting DA of Rs 6,800 per month, then at 38 per cent, the amount will increase by Rs 800 per month to 7,600. That is, you will get a profit of Rs 9,600 annually, according to this, the annual DA of an employee with basic salary of Rs 20,000 will be Rs 91,200.
  • If we look at the maximum basic salary of Rs 56,900, then the total increase in annual dearness allowance will be Rs 27312. That means Rs 2276 will increase every month against the existing DA. His total annual DA will reach Rs 2 lakh 59 thousand 464.

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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