da hike: How much will central government employee’s salary increase due to hike in DA?

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The government has hiked the dearness allowance (DA) component for central government employees by 3% to 34% effective from January 1, 2022. The hike in DA will benefit central government employees, central government pensioners and family pensioners getting pension from the central government.

The latest hike is said benefit 47.68 lakh central government employees and 68.62 lakh pensioners, stated a government press release on March 30, 2022.

A hike in DA translates to a hike in the salary of government employees. So, how much will a central government employee’s salary increase in actual monetary terms after a 3% hike in DA? The hike in DA is calculated on the basic pay of a government employee.

Let us say the basic pay of a junior level central government employee is Rs 18,000 a year. Earlier at the rate of 31%, the central government employee was receiving DA of Rs 5,580. Now after it has been hiked to 34%, the same government employee will now receive DA of Rs 6,120. Thus, due to hike in DA, his salary has increased by Rs 540.

For newly recruited class I officer, the basic pay is Rs 56,100. A hike in DA of 3% will translate into a hike in DA of Rs 1,683 to Rs 19,074 from Rs 17,391 earlier.

Also Read:
DA for central government employees hiked to 34%

Similarly for government pensioners and family pensioners receiving pension from the central government, the hike in dearness relief (DR) will be calculated on the basic pension amount.

Dearness allowance percentage is reviewed and re-fixed/ increased by the government twice every year on January 1 and July 1.

What is Dearness allowance/Dearness Relief?

Dearness allowance is usually received by government employees to compensate for rising inflation. The decision announced today will put more money in the hands of government employees and pensioners.

Dearness Allowance/Dearness Relief is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value.



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