Home / News / India /  DA hiked by 4% for central govt employees, pensioners

The Narendra Modi-led BJP government has announced the much-awaited hike in Dearness Allowance (DA) for central government employees and pensioners on Wednesday. The increase in 4% Dearness Allowance, effective 1 July, 2022, has come as a relief amid scorching inflation and the festive season.

The decision was taken in the Union Cabinet meeting today, Union minister Anurag Thakur said today. The 4% hike takes the DA to 38%.

The increase is based on the recommendations of the 7th pay commission.

The latest increase in DA will benefit around 47.68 lakh central government employees and about 68.62 lakh pensioners and is also applicable for civilian employees and those employed in defence services.

The central government revises dearness allowance and dearness relief on 1 January and 1 July every year, but this decision is usually announced in March and September.

Central government employees and pensioners across the country, paid based on the 7th Pay Commission, are waiting for amendments in DA and Dearness Relief (DR) ahead of these festival days. 

Earlier in March, the Cabinet had hiked the DA for central government employees and DR for pensioners by 3% to 34% from 31% previously, effective 1 January, 2022.

How much your salary will increase

With today's announcement, the DA payable will become 38% of basic salary. DA is calculated as a percentage of the basic salary.

If the basic salary or pension of an employee is 30,000, then the revised DA will be 11,400.

If your basic salary is 35,000, a 4% hike would mean a revised DA of 13,300. This will be an additional 1,400 in hand every month.

If your basic salary or pension is 50,000, then the revised DA/DR amount will be 19,000. This will mark an increase of 2,000 over the current amount.

If a person receives a salary of 75, 000, then the increased DA/DR rate will mean an increase of 3,000 over the present DA/DR amount of 25,000.

 

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