DA Hike From July 2022: Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners are likely to be hiked again. According to media reports, the hike would be announced early next month and would be effective from July 1.
The hike in inflation-linked allowance will result in an increase in wages for central government employees and pensioners.
The DA and DR are usually revised by the government in January and July. DA and DR are parts of the salary and pension (calculated as a specific percentage of the basic salary/pension which is then added to the basic salary/pension) given to employees and pensioners.
The hike in DA and DR will come as a major relief to different categories of central government workers amid skyrocketing inflation.
According to the Labour Ministry data, there are around 1.15 crore central government employees and pensioners who will be benefitted from the decision. Once the Centre revises DA and DR, states throughout the country follow suit by extending the benefit to their employees and pensioners.
The government believes that the additional money in the hands of employees and pensioners will help people to match their expenses amid rising prices due to the manifold jump in consumption demand post-pandemic.
Notably, the government had for 1.5 years didn't hike DA and DR due to the pandemic. The government had paused the DA hike from January 2020 until June 30, 2021, in order to divert the funds to fight against the pandemic.
The DA hike was resumed in July when the government announced a massive 11% rise to 28% from 17%. Later in October, DA was again hiked by 3% to 31%. In January this year, the allowance was increased to 34%.