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Good News: Dearness allowance of central employees increased by 4% – Modi cabinet announced, check details 

Good News: Dearness allowance of central employees increased by 4% – Modi cabinet announced, check details


Central employees have got a big gift. The Modi cabinet has approved dearness allowance for July 2022. The cabinet has approved 4 percent increase in dearness allowance. Now the DA of central employees has increased to 38 percent. Dearness Allowance will be applicable from 1st July 2022.

Meaning, from July itself, the central employees will get the benefit of 38 percent DA. For this, DA Arrear of 2 months (July and August) will also be given. Earlier, the government had approved the increase in DA in March 2022, which was implemented from January 1. The Central Government increases Dearness Allowance (DA Hike) for its employees twice a year. The first is applicable from January and the second from July. However, it is announced at the end of March and September.

Dearness relief for pensioners also increased Apart from central employees, pensioners will also get the benefit of increasing dearness relief. Central pensioners get the same benefit as the increase in dearness allowance. There has also been an increase of 4 percent in dearness relief for them. Now pensioners will also get pension at the rate of 38 percent. If someone’s pension is Rs 20,000, then at the rate of 4 percent, their pension will increase by Rs 800 in a month.

What is the increase in salary due to increase in DA?

DA increased by Rs 720/month for those with minimum basic salary
1. Minimum Basic Salary Rs 18,000
2. New Dearness Allowance (38%) Rs 6840/month
3. Dearness Allowance so far (34%) Rs 6120/month
4. By how much Dearness Allowance increased 6840-6120 = Rs 720/month
5. Annual Salary increase 540X12 = Rs 8640

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DA increased by Rs 2276 / month for those with maximum basic salary
1. Basic salary of the employee Rs 56900
2. New dearness allowance (38%) Rs 21622 / month
3. Dearness allowance so far (34%) Rs 19346 / month
4. How much dearness allowance increased 21622-19346 = Rs 2276 / month
5. Increase in annual salary 1707X12 = Rs 27312

Note: The calculation has been done on the basis of basic salary. However, the increase in salary is more when other allowances are added to it. With the increase in DA, other allowances are also affected.

How is Dearness Allowance calculated?

How will DA be calculated and how will it be decided. If Dearness Allowance (DA Hike) is to be increased by 4 percent, then it can be calculated on the basic salary. If someone’s basic salary is Rs 20,000, then at the rate of 4 per cent, his monthly salary will increase by Rs 800.

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