An increase in the DA of central government employees is likely to occur. The dearness allowance will likely increase to 5%.
The second phase of this year’s dearness allowance is expected to begin on July 1, 2022. According to previous estimates, the dearness allowance would increase by 4%. Following recent figures from the All India Consumer Price Index for Industrial Workers, the dearness allowance is likely to be increased from 4 percent to 5 percent.
At present, central government employees receive 34 percent dearness allowance. It was expected that the dearness allowance would increase to 38 percent. The inflation allowance, however, is expected to increase by 5 percent. According to the All India Consumer Price Index for April.
As a result of rising inflation, the central government plans to increase the dearness allowance (DA) in July. There is a possibility that salaries of central employees will increase significantly if this occurs. The salary of central employees can be increased from Rs 8,000 to Rs 27,000 if the dearness allowance is increased from 34 percent to 39 percent.
According to the data, the central government’s decision will affect 47 lakh employees and 68 lakh pensioners. Along with inflation, EMIs are also becoming more expensive. The trend is to increase the DA from January 1 and July 1 in general. So now the central employees are eagerly waiting for this.
The DA and DR are revised twice a year in January and July, based on retail inflation data from the central government. Inflation in the country has surpassed the RBI’s forecast. The country’s retail inflation has gone above 6 per cent of the RBI’s tolerance. Retail inflation rose to 7.79 per cent in April from 6.95 per cent in March.