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According to the Press Information Bureau (PIB) press release issued on September 28, 2022, “The Cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022. The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.”
The last time DA was hiked was in March 2022. During this hike, DA was increased by 3% to 34% effective from January 1, 2022.
A hike in DA translates to a hike in the salary of government employees.
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.Dearness allowance percentage is reviewed and re-fixed/ increased by the government twice every year on January 1 and July 1. The next DA/DR hike is due on January 1, 2023.Also read: DA hiked by 4% to 38%: How much central Government employee’s salary will increase?
How is DA calculated?
The hike in DA is calculated on the basic pay of a government employee. 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. The basic pension amount will be mentioned on in your Pension Payment Order (PPO).
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