Cassian Baliarsingh

The month of July is the month of appraisals. It is significant for all, including both private and government job holders.  While private employees are likely to get their appraisals, the government is also going to increase the dearness allowance (DA) and the salary of both central and state employees.

There was an increase in incentives in the month of January; there can be a rise again in July. The central government increased the DA by 4 per cent to 50 per cent in January. There are reports that the allowance can be increased by a similar percentage (4%) in July as well.

If a government employee is earning basic salary of Rs 50,000, there will be 4% increase in DA i.e. Rs 2000. This implies that all the employees can expect an increase of Rs 2,000 from July. However, there are also reports that the DA will only be increased by 3%. If that’s the case, the employees will get Rs 1500 hike in their July salary.

How is the DA Hike Calculated?

The DA and DR hike is decided based on the percentage increase in the 12-month average of the All-India CPI-IW.  Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September/October.

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House Rent Allowance

Besides the DA, there is also provision of HRA (House Rent Allowances) for the employees. It is a part of the employee’s salary provided by the employer for the expenses incurred towards rented accommodation.

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