The Centre on Wednesday announced a much-awaited increase of 4% in dearness allowance (DA) and dearness relief (DR) for central government staff and pensioners, respectively, with effect from July 1, 2022. The increase comes as a relief amid scorching inflation during the festival season.
Briefing the media about the decisions of the Union Cabinet, Information and Broadcasting Minister Anurag Thakur said the hike will raise the total DA/DR to 38%, benefiting around 47.68 lakh central employees and about 68.62 lakh pensioners.
An earlier increase of 3%, from 31% to 34%, was made in March, effective from Jan 1, 2022.
For purposes of calculation, if the basic salary or pension is Rs30,000, the revised DA will be Rs 11,400, an additional Rs1,400 in hand every month. If the basic salary or pension is Rs50,000, the revised DA/DR will be Rs 19,000, an increase of Rs 2,000 over the current amount. The increase will be Rs 3,000 over the present DA/DR of Rs 25,000 if a person receives a salary or pension of Rs 75,000.
The increase is based on the recommendations of the Seventh Pay Commission currently in vogue. The hike is supposed to happen on Jan 1 and July 1 every year but the decision is usually announced in March and September.