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Dearness allowance Increased: Along with 4% dearness allowance, these allowances of employees will also increase 

Dearness allowance Increased: Along with 4% dearness allowance, these allowances of employees will also increase 


The proposal to increase Dearness Allowance by 4% can be approved in the last cabinet meeting of this month to be chaired by Prime Minister Narendra Modi on Wednesday. This estimate is based on the AICPI-IW Index. According to the figures.

Actually, for the first half of the year 2022, from January to June, the Modi government has increased the dearness allowance, now the increase in dearness allowance for the month of July to December is awaited. If this is agreed upon in September, the total DA of the employees will increase from 34% to 38%.

If the new DA is implemented from July 1, 2022, then 3 months arrears will also be available. It is expected that the benefit of increased DA can be given along with the salary of October along with arrears. However, no official statement has come out from the government yet.

If the DA is 38 per cent and the minimum basic salary is Rs 18,000, then the total DA would be Rs 6,840 and the total profit would be Rs 720 per month. On the other hand, a maximum of Rs 54,000 on basic pay, Rs 56,000 as DA will get Rs 27,312.

In this, you will get a total benefit of Rs 2,276 per month. 47.68 lakh central employees and 68.52 lakh pensioners will get its benefit. Apart from this, House Rent Allowance, Travel Allowance, Provident Fund, City Allowance and Gratuity can also be increased after the increase of DA.

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Calculation will be like this

  • Dearness allowance for central employees is estimated on the basis of the AICPI index released by the Ministry of Labor and Employment. The index has been prepared for 88 centers and across the country and is released on the last working day of every month.
  • The Labor Ministry has changed the formula for DA calculation in the base year 2016. A new series of WRI-Wage Rate Index has been released, which will replace the old series of base year 1963-65 with the new series of WRI with base year 2016=100.
  • Percentage of DA for Central Government employees = [(Average of All India Consumer Price Index (AICPI) for last 12 months – 115.76/115.76]×100. Dearness Allowance Percentage to Percentage of DA = (Average of Consumer Price Index for last 3 months (Base Year 2001=100)-126.33))x100
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