Pradeep Singh

The Narendra Modi government has announced a 4 per cent hike in Dearness Allowance (DA) for the Central government employees.

The current hike in DA will be effective from July 1, 2022. The 4 per cent increase has taken the total DA of the employees to 38 per cent.

The Union Cabinet has decided to increase DA by 4 per cent for central government employees and pensioners, informed Union Minister Anurag Thakur on Wednesday.

This will cost the Narendra Modi government Rs 12852 crore. However, around 52 lakh Central government employees will benefit from this hike. DA and DR are revised on the basis of retail inflation-industrial workers.

Taking into account the recent All-India CPI-IW data for the month of May, it was earlier expected that there could be a DA hike of around or above 4 per cent.

The All-India CPI-IW for May 2022 increased by 1.3 points and stood at 129.0. On 1-month percentage change, it increased by 1.02 per cent with respect to the previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago.

DA is calculated as a specific percentage of the basic salary and then added to the same. The government revises DA twice in a year.

Meanwhile, the hike in DA is seen as a major relief for the employees in view of the current inflation amid the festivity.