Dearness Allowance Hiked By 3% To 34%, Effective From January 1, 2022

-


Prime Minister Narendra Modi's Union Cabinet approved a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners on Wednesday.

The DA and DR are presently at 34 percent, with the latest increase taking effect in January 2022.

Dearness Allowance is a component of central government employees' pay that is designed to protect them from the effects of inflation. Dearness The term "relief" refers to the assistance provided to retirees.

According to the government, "this rise is in conformity with the established formula, which is based on the recommendations of the 7th Central Pay Commission."

In the face of rising petrol and oil prices, as well as inflation, the move is expected to help around 47.68 lakh central government employees and 68.62 lakh retirees.

The total impact of Dearness Allowance and Dearness Relief on the exchequer would be Rs 9,544.50 crore per year.

Every year, between January and July, the government updates the DA and DR. However, they differ from person to person depending on whether they live in the city, the suburbs, or the countryside.

Due to the COVID-19 pandemic, the government increased the DA and DR for central government employees and pensioners to 28 percent from 17 percent in July 2021, after maintaining them stable for more than a year. In October 2021, the DA and DR both increased by 3%. 

Comments

Post a Comment

Popular posts from this blog

50% Dearness Allowance (DA) & Dearness Relief (DR) expected from Jan, 2024

-
Labour Bureau has published All-India Consumer Price Index for Industrial Workers (CPI-IW) for September 2023 which recorded a sharp decrease by 1.7 points, resulting in an index value of 137.5 (one hundred thirty-seven point five). This crucial economic indicator is instrumental in calculating the Dearness Allowance (DA) & Dearness Relief (DR) for Central Government Employees and Pensioners, and the recent dip in the CPI-IW index has far-reaching implications for their financial well-being. The decline in the CPI-IW Index may initially raise concerns; however, it leads to a promising development for Central Government Employees and Pensioners. Despite the decrease in the index, the expected DA/DR from January 2024 is anticipated to increase by a substantial 4%. This increase will propel the DA/DR to reach an impressive 50% in the 7th Central Pay Commission (CPC), greatly benefiting those who rely on these allowances and benefits to maintain their standard of living. While the decl
Read more

India’s 8th Pay Commission: A Potential Windfall for Central Government Employees

-
  Amidst the rising cost of living and inflation, central government employees await a potential financial relief as the   8th Pay Commission   takes center stage in national discourse. This proposed commission, speculated to be implemented by 2026, could see a significant increase in salaries and benefits for central government employees. A Proposed Leap in Salaries According to sources, the implementation of the 8th Pay Commission could hike the salaries of central government employees by  44 percent  from next year. At present, the minimum salary for these employees fluctuates between Rs 18,000 to Rs 56,900 per month. With the new pay commission in place, their monthly compensation might see an increase to at least Rs 25,000. The Crucial Fitment Factor The debate over the  fitment factor  for the 8th Pay Commission also gains momentum. This factor determines the multiplication used to calculate the new minimum wage. If the government retains the current fitment factor at 2.57 times,
Read more

September AI CPI-IW out. DA Expected to Cross 50% from January 2024

-
Image
The Labour Bureau has published the All-India Consumer Price Index for Industrial Workers (CPI-IW) for the month of September 2023. The All-India CPI-IW declined by 1.7 points in September 2023, from 139.2 in August 2023. Based on the indices till August 2023, the expected DA for central government employees from January 2024 was expected to cross 50%. However, even with the CPI-IW declining by 1.7 points in October 2023, still the DA can be 50% from January 2024. However, the chances of it becoming 51% is less. For the calculation of the DA, CPI-IW indices for 12 months, i.e. January 2023 to December 2024 are required. The indices for three more months are required to calculate the exact DA. Based on the indices till September 2023, the expected DA for central government employees from January 2024 is almost certain to cross 50%. This is an increase of 4 percentage points from the current DA of 46%. However, the DA touching the 50% milestone will have additional benefits as a hike in
Read more