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- Published: May 4, 2022 12:52
New Delhi: In a good news for Central government employees & pensioners, Modi government is set to revise the Dearness Allowance (DA) rates by July.
While the rising prices & high inflation have burnt a hole in people’s pockets, this move will come as a welcome move for Central government employees.
According to reports, the DA is likely to be hiked by about 3% in July. It is expected to benefit over 1 lakh crore employees & pensioners.
Under the 7th Pay Commission, the employees are extended DA twice in a year i.e. January & July. Not long ago, the allowance was increased by the Centre. If it is revised again in July, the remuneration will see an addition of 3%.
No official announcement has been made yet but if the All India Consumer Price Index remain at the upper end, government may decide to extend DA benefits to its employees and retired officials.
The Consumer Index was 125.1 in January, 125 in February and reached 126 in March. If it continues the uptrend, the DA in all likelihood will be raised.
Currently, the DA of employees & pensioners stands at 34% and if revised by 3%, it would reach 37%. If the inflation remains at higher end, the allowance will be increased which in turn will benefit about 50 lakh Central govt employees and about 65 lakh pensioners.
During the Coronavirus pandemic, this allowance was stopped for about 1.6 years. The govt staff didn’t get DA benefits during this period but in July 2021, it saw a jump from 17 to 28%. In October 2021, it was revised to 31%, then in March 2022, it was raised to 34%.