According to media reports, the government may make a formal announcement before Holi. The government revises DA every year in January and July, although its official announcement is made after some time. Usually, the increase in January is announced before Holi, while the increase in July is made around Diwali. The government makes this allowance to maintain the purchasing power of employees from the impact of inflation.

How much will the increase be this time?

According to the data of December 2024, the government may increase it by 3%, which will take DA and DR to 56%. However, the final decision will depend on the approval of the Union Cabinet headed by the Prime Minister.

A look at the previous DA hikes…

March 2024: The government increased DA from 46% to 50%. This announcement was made on March 7, 2024, which gave relief to the employees before Holi.
October 2024: The government increased DA by another 3%, taking it to 53%. This amendment came into effect from July 1, 2024.

8th Pay Commission and future DA hikes

Currently, the recommendations of the 8th Pay Commission are likely to be implemented in 2026. During this time, it will be seen whether DA will be merged with basic pay or not. The recommendations of the 8th Pay Commission may be finalized by the end of the financial year 2025-26 and will be implemented next year. Earlier, under the 7th Pay Commission, two DA hikes are expected in 2025 and one in 2026.

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Now the DA of the employees has increased from 50 percent to 53 percent. After DA becoming 53 percent, once again the news of its merger in the basic salary has started coming. However, the government has also issued its statement on this. Expectations have started increasing from the statement issued by the government.

What will happen to dearness allowance?

After DA and DR cross the limit of 50%, DA and DR will automatically be added to the basic salary. However, such speculations have come many times. It was said in the 6th Pay Commission that when the dearness allowance crosses the limit of 50 percent, it will be added to the basic salary. Now the government has responded to this.

Will DA and DR be added to the basic salary?

The reports of the Fifth and Sixth Pay Commissions (para 105.11) recommended merging DA with the basic salary and terming such merger as dearness pay. Following this recommendation, in 2004, 50% of DA of the basic pay was merged to form dearness pay for the purpose of calculation of allowances and retirement benefits. But later this was changed. However, this change will not happen automatically. The government will have to take a decision on this.

The government said this

Central Government Employees will now get dearness allowance at the rate of 53 percent. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. Now after DA became 53 percent, it has again become a topic of discussion. On this, Information and Broadcasting Minister Ashwini Vaishnav said that the government is discussing it.

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Now it is expected that this DA and DR arrears can be given to central employees and pensioners. The Modi government has received a proposal to release DA arrears of 18 months and it is likely that the government may announce it in the full budget 2024 to be presented on July 23.

Demand for DA arrears

Shiv Gopal Mishra, Secretary, Joint Consultative Machinery for Central Government Employees, National Council (Staff Side) has urged the government to release the DA arrears of 18 months that were withheld earlier. Earlier, Mukesh Singh, General Secretary, Bharatiya Pratiraksha Mazdoor Sangh had also demanded the Central Government to release the payment.

DA stopped during Covid has not been received yet

DA arrears of 18 months are still pending. In a letter to Finance Minister Nirmala Sitharaman, Shiv Gopal Mishra has said that three installments of Dearness Allowance (DA) and Dearness Relief (DR) for the financial year 2020-21 were stopped due to the COVID-19 pandemic. However, now that the country is slowly recovering from the impact of the pandemic, the financial situation is improving and it is a matter of happiness.

Also Read: Petrol and diesel rates have been revised for Monday 22nd July. check the latest price

Proposal for 18 months DA arrears

In a letter to the Prime Minister, Mishra, as Secretary (Employee Side) of the National Council (JCM), pointed out that the issue of 18 months’ DA arrears is important for central government employees and pensioners. If the government accepts this proposal, employees can get a large amount in salary, which will help them in times of inflation.

It can be announced in the budget

If the Modi government accepts the proposal of 18 months’ DA arrears, it will be a relief news for lakhs of central employees and pensioners. The government’s announcement on this issue is eagerly awaited in the upcoming budget.

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Now there have been media reports that the basic salary of central government employees and pensioners has increased during the next increase in Dearness Allowance or Dearness Relief. Usually, DA and DR of central government employees and pensioners increase from July.

With DA and DR touching the limit of 50%, there is speculation that DA and DR will automatically be added to the basic salary. This will increase the basic salary of lakhs of central government employees and pensioners in the country. Are central government employees and pensioners expecting an increase in basic salary from July 2024? Will this change happen in future? This is the question being asked by lakhs of central government employees.

Also Read: SEBI Rule Change: Stocks to be credited directly to your Demat a/c, not via broker

Will DA and DR be added to the basic salary?

Speculations began when the issue of merging DA with basic salary after crossing the 50% limit came up. The Fifth Pay Commission report (para 105.11) had recommended merging DA with basic salary and terming such merger as dearness pay. Following this recommendation, 50% of DA was merged with basic salary to form dearness pay for the purpose of calculation of allowances and retirement benefits in 2004. But this was later changed. However, this change will not happen automatically. The government will have to take a decision on this.

Right now dearness allowance is 50%

Central Government Employees are getting dearness allowance at the rate of 50 percent. The government had increased the dearness allowance from 46 percent to 50 percent in March. This was implemented from January 1, 2024. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. However, this will not happen. Even if DA is 50 percent, it will not be added to the basic salary. Even after the DA increases next time, it will be calculated on the basis of basic salary.

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States like Tamil Nadu, UP, Haryana are included in this list. Here we are telling you that after the central government, how many states of the country have increased the dearness allowance of their employees.

Tamil Nadu government increased dearness allowance

The Tamil Nadu government has increased the rate of Dearness Allowance (DA) by 4 per cent for government employees, including teachers, pensioners and family pensioners, under the 7th Pay Commission. Now the DA of the employees has increased from 38 per cent to 42 per cent. These new rates will be considered from 1 April 2023. This decision of the government will benefit 16 lakh government employees, teachers and pensioners of the state.

DA increased for government employees of Uttar Pradesh

The Uttar Pradesh government has also increased DA for its employees and Dearness Relief (DR) for its pensioners by 4 per cent with effect from January 1, 2023. This decision has been taken recently by UP Chief Minister Yogi Adityanath. However, this increase will be considered applicable from January 1, 2023. The hike in DA and DR will benefit 16.35 lakh employees and 11 lakh pensioners in the state.

Dearness Allowance increased in Bihar as well

In April this year, the Bihar government had also announced that the government would increase the DA of state employees and pensioners by 4 per cent. Dearness Allowance (DA) is given to government employees to deal with rising inflation. Dearness relief is given to employees as well as pensioners. Dearness Relief (DR) is similar to the allowance and is given to the pensioners of the Central Government.

DA has increased in Himachal, Assam, Rajasthan

In April, the Himachal Pradesh government had implemented a 3 per cent hike in DA. Assam Chief Minister Himanta Biswa Sarma said that the government has increased the DA of the employees by 4 percent. Apart from this, the Rajasthan government has also increased the DA by 4 percent.

DA is increased every 6 months

At the central level, the government usually revises the rates of DA and DR every six months. It is given on the basis of basic salary due to inflation. Just in March, the Modi government at the Center had increased the DA of the employees by 4 per cent. Now central government employees are getting 42 per cent DA. This hike was considered applicable from January 1. The central government increases DA twice a year in January and July.

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If you yourself or any member of your family is a central government employee, then you must know the update related to dearness allowance. After the increase in dearness allowance by the government, 52 lakh central employees and 48 lakh pensioners will get good news on dearness allowance and dearness relief.

The government had taken the decision on DA to be implemented from January 1 on March 27. Employees and pensioners have started getting the increased 4 percent DA from January 1. Now the next dearness allowance will be applicable from July 1.

The figure increased in March after the decline in February

Before the DA of July is implemented, a big update has come for the central employees. You will also be happy after reading this news. The AICPI index data for March has been released by the Labor Ministry on 28 April.

This figure has increased again in March after a decline in February. Earlier in February 2023, a decline was recorded in it. After the jump in the figure, the increase in DA can be up to 4 percent as expected.

AICPI index climbed in March

The dearness allowance for January was announced in March 2023 on the basis of AICPI index figures till December 2022. But the dearness allowance for July will be announced considering the figures from January to June 2023 as the basis.

In January, this figure had increased to 132.8 points. After this, it declined in February and it reached 132.7 points. It has again bounced in March and it has climbed up to 133.3 points.

The figure has crossed 44 percent

On the basis of the figure of 132.7 in February, the dearness allowance had reached close to 44 percent. This time it has increased beyond 44 percent. Presently the dearness allowance is 42 percent. The dearness allowance for July will be announced on the basis of AICPI index data till June. This time it is expected to increase from 42 percent to 46 percent. The new dearness allowance may be announced in September, but it will be implemented from July 1.

How much DA will increase

After the DA of January was increased by 4 percent, the dearness allowance of central employees had increased to 42 percent. Now if there is a further increase of 4 percent in this, then it will increase to 46 percent.

Let us tell you that under the Seventh Pay Commission (7th Pay Commission), the DA (DA Hike) of central employees is increased twice a year. DA of January 2023 has been announced. Now the DA of July 2023 is yet to be announced by the government.

Who releases the data?

Let us tell you that it is decided on the basis of AICPI index that how much will be the increase in dearness allowance? On the last working day of every month, the figures of All India Consumer Price Index (AICPI) are released by the Labor Ministry. This index has been prepared for 88 centers and for the entire country.

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The government had increased Dearness Allowance (DA) and Dearness Relief (DR) by four percent for the first half of January to June 2023. After this DA increased from 38 percent to 42 percent. The government increases the DA of the employees every six months. Therefore, it is expected that if there is an increase of four per cent next time, DA will reach 46 per cent.

This time you can get approval soon

Actually, for the second half i.e. July to December 2023, an increase in DA will be announced in the coming days. It is being said that this time the government can take a decision on the increase in DA soon. Normally the government gives its approval in September or October. But this time there is a possibility of announcement in August. Explain that according to the recommendations of the Seventh Pay Commission, there is an increase in DA twice a year. There has been a four per cent increase in DA for the first half.

DA is a part of the salary structure

DA is part of the salary structure of government employees. In view of the inflation rate, the central government increases the DA of the employees. Higher the inflation, higher is the increase in DA. The Labor Bureau calculates dearness allowance and dearness relief for employees and pensioners. It is calculated on the basis of Consumer Price Index (CPI-IW).

How much will be the increase in salary?

If the DA of central employees becomes 46 percent, then their salary will also increase. Suppose the basic pay of a central employee is Rs 18,000. If we look at 42 percent, then DA becomes Rs 7560. On the other hand, if the DA increases to 46 per cent in the second half, then it will become Rs 8,280.

That means there will be an increase of Rs 720 per month in the salary. The government had also increased DA by four percent in the second half of the year 2022. That’s why this time also this much increase is being expected. However, no official statement has been issued by the government on this yet.

DA reached from 17 to 42 percent

Let us tell you that after a long time in July 2021, the central government increased the dearness allowance of central employees from 17 percent to 28 percent. After this, in October 2021, it was increased to 31 percent, giving another 3 percent hike.

The government had increased the DA of the employees by three percent in March 2022. After this increase, the dearness allowance of the employees was increased from 31 per cent to 34 per cent. After this, there has been an increase of four per cent in DA twice.

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The government has approved a 4 percent hike in the dearness allowance to be implemented from January. Along with this, pensioners and employees will now get 42 percent dearness relief and dearness allowance, earlier it was 38 percent. In the coming days, central employees can get another big gift and this is the fitment factor. A decision can be taken by the government to increase it next year.

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Union Information and Broadcasting Minister Anurag Thakur had announced on 24 March 2023 that the 4 percent hike in DA has been hiked. DA for central government employees and DR for pensioners will be increased to 42 per cent. This increase has come into effect from 1 January 2023.

These employees will benefit

According to Thakur, this decision will help 69.76 lakh central government pensioners and about 47.58 lakh central government employees. Central government employees can calculate the increase in their salary after the DA hike according to their basic pay and grade.

Increase in dearness allowance: calculation of 42%

After the 4% dearness allowance hike, the total DA has increased to 42%. If the dearness allowance is calculated at the maximum salary limit of Rs 56,900, then the annual dearness allowance will be Rs 2,86,776. Those coming in this pay grade will get Rs 2,276 more as DA than the current rate. With the announcement of this DA hike, their monthly DA will increase to Rs 23,898.

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In fact, three installments of dearness allowance and dearness relief were not given to central employees and pensioners during the Corona period. Dearness allowance and dearness relief for January 2020, July 2020 and January 2021 were not given. The government clarified that at present the budget deficit is twice as compared to the provisions of the FRBM Act, so it is not proposed to give DA.

The government says that the decision to stop the three installments of Dearness Allowance (DA) / Dearness Allowance (DA) of central employees and pensioners was taken on January 1, 2021 in the context of COVID-19, so that there is not much pressure on government finances. But still the government’s fiscal deficit is running at more than double the level. Right now the government may take some more time to recover from the fiscal deficit.

I am getting this much DA

Please tell that at present, 38 percent Dearness Allowance (DA) is being given to the central government employees. Last year in September 2022, the dearness allowance was increased by the government. There was a lot of hope from the government to get dearness allowance for 18 months to the central employees, but the government has decided not to give dearness allowance to the employees and pensioners, due to which they have got a big blow.

Although the employees have been continuously demanding DA for 18 months from the union government. He argues that despite not increasing the DA Hike, he has been working risking his life during the Corona period.

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It is being speculated that the government may give this good news to the central tax collectors on Holi. At the same time, the cabinet meeting is to be held on March 1 next month. DA hike is expected to be approved in this meeting. In view of the inflation of industry workers, this time dearness allowance can be increased by 4%.

DA may increase by 4%

Let us tell you, the increase in DA of central employees is done in view of inflation. The higher the inflation, the higher the DA increases. This is the retail inflation of industry workers (CPI-IW). Considering the retail inflation of industry workers, this time DA is expected to increase by 4.23%. At present the DA of central employees is 38%. After an increase of 4 percent, it will become 42%.

Understand how much salary will increase like this

If the basic salary of a central employee is Rs 18,000 per month, then according to 38% DA, he is getting dearness allowance of Rs 6,840. This time DA can increase by 4%. On a basic salary of Rs 18,000, it will become Rs 720. In this way, after the increase in DA, an employee with a basic salary of Rs 18,000 will get dearness allowance of Rs 7,560.

Suppose, the basic salary of an employee is Rs 18,000 per month.

Monthly Dearness Allowance at the current rate of 38%: 18000 x 38 /100 = 6,840

Annual Dearness Allowance at current rate of 38%: 6,840 x 12 = 82,080

Monthly Dearness Allowance after DA hike: 18000 x 42 / 100 = 7560

Annual DA after DA increase: 7560x 12= 90,720

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If media reports are to be believed, the government may increase the DA ie Dearness Allowance-DA of the employees before Holi. The government can increase the dearness allowance from 38 percent to 42 percent. The government will implement these new rates from January 1, 2023.

Government will increase dearness relief

Along with dearness allowance, the central government will also increase Dearness Relief (DR). Dearness relief is given to the pensioners to deal with inflation and dearness allowance is given by the government to protect the employees from rising inflation. This will benefit lakhs of employees and pensioners of the country.

Salary and pension will increase so much

Right now the DA of the employees is 38 per cent. If there is an increase of 4 percent in it, then it will increase to 42 percent. Suppose if your basic salary is Rs 18,000 per month under Level 1 pay scale, then your DA will increase to Rs 7,560. That is, there will be a total increase of Rs 720 per month in DA. According to 38 per cent DA, the employees are currently getting Rs 6,840 DA. In the same way, the pension received by the pensioners will also increase. His DR is calculated on the basis of basic pension.

The government does revision in DA and DR twice a year.

The government usually revises the rates of DA and DR every six months. It is given due to inflation i.e. to deal with inflation. If you look at the records of the previous years, the government has increased the dearness allowance in January and July. The DA paid to the employees along with the salary comes fully in the taxable income. The Income Tax Act states that the tax liability for DA and salary is required to be disclosed in the return filed.

DA was increased before Diwali last year

The last revision in DA was done on 28 September 2022, which was considered to be applicable from 1 July 2022. The Center had raised DA by four percentage points to 38 per cent based on the percentage increase in the 12-monthly average of the All India Consumer Price Index. Now it is expected to grow by 4 percent again. If this happens, it will become 42 percent.

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The hike in DA will be considered applicable from 1 July 2022. Before this, recently, the Tripura government has given good news to its employees. Tripura government has increased DA and DR by 12 percent. Now the DA of the employees there has increased from 8 per cent to 20 per cent.

This is how DA is calculated

If understood in simple language, DA means allowance given to maintain the standard of living and to deal with rising inflation. This dearness allowance is given to the employees on the basis of their basic salary. For example, if the basic pay is Rs.20,000, then it will be calculated at Rs.20,000.

Central government has to increase DA in the new year

The Modi government at the center has to increase DA in the new year. If media reports are to be believed then the government may increase DA and DR by 3 to 5 percent in March 2023. However, this DA hike will be considered applicable from January. If the government increases the Dearness Allowance and Dearness Relief (DR), then it will increase to 43 percent.

The central government increases dearness allowance twice a year.

The Central Government increases the Dearness Allowance (DA) twice a year on January 1 and July 1. The government had increased the dearness allowance by 4 per cent to 38 per cent in September before Diwali. This hike was considered applicable from 1 July. Earlier, the government had increased DA in March. Then the government had increased the DA by 3 percent to 34 percent under the 7th Pay Commission.

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Tripura CM Manik Saha has announced a 12 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners. State government employees and pensioners are happy with this announcement made by the government.

The increase will be applicable from 1 December This increase made by the government will be applicable from 1 December. That is, the salary of the employees who will get on December 31 will come with 20 percent DA. With this increase, the DA of state government employees has increased from 8 percent to 20 percent.

Saha said during the press conference, ‘This decision will benefit 1,04,600 permanent employees and 80,800 pensioners. An announcement has also been made by the government for temporary employees. The government has almost doubled their remuneration by increasing it.

The state government revised the salary structure.

The Chief Minister said that increasing the DA/DR by 12 per cent would put an additional burden of Rs 120 crore on the state government every month. This is an additional burden of Rs 1,440 crore on an annual basis. Saha said that despite the paucity of resources, the state government has revised the pay structure. This will benefit lakhs of employees and their families. Let us tell you that assembly elections are to be held in the Northeast in February.

Apart from this, the employees and pensioners of the central government are also going to get the gift of DA and DR hike in the new year. Right now the DA of central employees is 38 percent. In the coming time, the government can increase it by 4 percent. With this it will increase to 42 percent.

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Several media reports suggest that his Dearness Allowance (DA) is likely to increase by March 2023. Apart from the DA hike, the central government may also increase the Dearness Relief (DR) for pensioners.

Dearness Allowance and Dearness Relief

Government employees should know that both Dearness Allowance and Dearness Relief are revised twice a year – first in January and then in July, and now as the New Year Soon to come, government employees may get the news of DA hike which will definitely make them happy. If reports are to be believed, by March 2023, central government employees are likely to get 3 to 5 percent DA hike.

The Center had hiked DA in September 2022, benefiting around 48 lakh central government employees and 68 lakh pensioners. The government had announced a 4 per cent hike in DA and after that the total dearness allowance reached 38 per cent. Before the September hike, central government employees were getting 34 percent DA, which was increased by 3 percent in March 2022.

7th Pay Commission DA Although earlier the government had not announced the DA hike during the Covid pandemic. From July 1, 2021, the government had increased the dearness allowance by 11 percent. And from July 2021, DA was increased from 17 to 28 percent. At present, central government employees are getting 38 percent DA.

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Dearness allowance arrears for 18 months. It has been clearly stated by the government that it is not practical to issue arrears of Dearness Allowance for 18 months. If you remember, during the Corona epidemic, the work was done to stop the Dearness Allowance (DA) received by the central employees and Dearness Relief (DR) of the pensioners.

Minister of State for Finance Pankaj Chowdhary gave a written reply to a question in the Rajya Sabha recently in this regard, in which it was clearly stated that the release of outstanding installments of dearness allowance and dearness relief to central government employees and pensioners, which were stopped during the Corona period, is not possible from anywhere. Doesn’t seem practical. Due to the adverse effects of Covid in the year 2020 and the welfare measures taken by the Centre, its fiscal impact was seen after the financial year 2020-21.

Central government received application in this regard

Minister of State for Finance Pankaj Chowdhary informed the House that the government has received several applications from various employees’ and pensioners’ associations regarding release of DA and DR for 18 months. Let us discuss here that in view of the economic situation caused by the epidemic, the government had done the work of stopping the 3 installments of DA and DR payable from January 1, 2020 to January 1, 2021.

Later, the Modi government gave gifts to the employees.

It is worth mentioning that a month before Diwali, the Modi government at the center had spread a smile on the faces of the central employees. The dearness allowance (DA) of central employees was increased by 4 percent by the central government. Central employees used to get 34 per cent DA, which has now been increased to 38 per cent.

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The Pensioners and Welfare Department, which comes under the Ministry of Personnel, has said that the Dearness Allowance to the pensioners will be paid on the basis of old and original basic pension. For this, the concerned department has also issued the official notification.

Government issued memorandum

The Pensioners and Welfare Department has said that it had received several queries related to this, in which it was asked whether Dearness Allowance is being given on basic pension or is it reduced after commutation on pension? Giving information on this, the department said that dearness relief has been given on the basic pension before commutation or on the basic pension before commutation on the basis of the recommendations of the commission. After deduction of commuted pension, dearness relief is not being paid on pension.

This clarification from the department has cleared the dilemma of pensioners that dearness relief is paid to them on the basis of original basic pension and not on the basis of reduced pension after commutation.

Pensioners get dearness relief

It is worth noting that under sub-rule 52 of the Pension Rules 2021, pension relief is paid to retired employees amid rising inflation. This amount is given to the pensioner or his beneficiary. Let us tell you that like dearness allowance, the government announces increase in it every half year and at the time of increasing DA for employees, the increase of DR for retired employees is announced.

How much is the DR at this time?

Let us tell you that this time under the 7th Pay Commission, the Central Government has increased the dearness allowance of the employees to 38 percent. Along with this, dearness relief to pensioners has also been increased to 38 percent. Let us tell you that this dearness relief for pensioners will be calculated on the basis of basic pension before commutation. 38 percent dearness relief has been implemented from July 1, 2022. 

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The Uttar Pradesh government has increased the DA and DR (Dearness Relief) of employees and salaried employees by 4 percent to 38 percent. Apart from this, a bonus of Rs 6908 will also be given to the state employees for the financial year 2021-22. The new rate of DA and DR will be considered applicable from July 1, 2022. This means that 3 months arrears will also be given to the employees.

DA is calculated on the basis of your basic salary. Suppose your basic pay is Rs 42000, then your DA will now be Rs 15960. Earlier, the DA of the employees of the UP government was 34 percent. That is, then employees with a basic pay of Rs 42,000 get Rs 14280 as dearness allowance. If seen in this way, now the salary of state government employees will increase by Rs 1680. Note that the change in your salary will depend on your basic salary only.

There was an increase of 3 percent in August, the UP government had increased the DA by 3 percent in August from 31 to 34 percent. This new decision of the government will now benefit about 15 lakh employees of the state. Also, the bonus of Rs 6908 that the government will give to these employees will put an additional burden of Rs 1,022 crore on the exchequer.

Who will get how much cash bonus

Every employee of the UP government will not get the full amount of bonus. Actually, employees who are GPF (General Provident Fund) account holders will get only 25 percent of the bonus. The remaining 75 percent will go to the GPF account. That is, these people will get only Rs 1727 cash as bonus. At the same time, those who are not linked to GPF will get the entire bonus amount in cash.

The Center had also increased dearness allowance . Recently, the Central Government had increased the DA and DR of the employees and salaried people receiving salary under the Fifth and Sixth Pay Commission. The dearness allowance of employees taking salary under the Sixth Pay Commission had increased from 203 per cent to 212 per cent. Whereas the DA of employees receiving salary under the Fifth Pay Commission was increased by 15 per cent from 381 to 396 per cent. The new rates are believed to be applicable from July 1. So these people will also get arrears of 3 months.

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An official said that about two lakh government employees and 1.35 lakh pensioners are sure to benefit from this decision.

Cabinet Secretary Vandana Dudel said, “The Council of Ministers has approved a proposal to increase the Dearness Allowance payable to state government employees to 38 per cent from the existing 34 per cent with effect from July 1, 2022.”

He said that the cabinet has also decided to increase the dearness relief for pensioners from the existing 34 per cent to 38 per cent.

19 proposals have been approved by the council of ministers, including a plan to hold urban local body (ULB) elections without OBC reservation in 2023.

Dadel said that considering the OBC seats as unreserved seats, elections will be held next year.

In addition, the cabinet approved a proposal to sanction ₹ 9.03 crore for the purchase of 21 sports utility vehicles for the judges of the Jharkhand High Court.

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According to the industrial inflation figures, the dearness allowance and relief increase. The formula by which dearness allowance increases for central employees, dearness relief for pensioners also increases with the same formula. The June 2022 data of the AICPI index is showing that this time there may be an increase of 4 percent. With the increase in DR, there will be a tremendous increase in the pension of pensioners.

Dearness Relief (DR) will be 38%
In the current structure in the 7th Pay Commission, all central government employees and pensioners are getting DA and DR at the rate of 34 percent. But, after the increase at the end of September, the dearness relief will also reach 38%. For example, the central employees will get three months’ salary together with the dearness allowance money. Similarly, pensioners will also get dearness relief for three months simultaneously. In this, the difference of pension of July and August will be given as arrears. At the same time, dearness relief money will be added to the pension of September. Pensioners can get an idea from their pay-grade band as to how much their pension will increase.

How much will the pension increase? See here DR Calculation

According to the pay-matrix of the 7th pay commission, there will be a bumper increase in the pension of an employee retired from officer grade. Here we have calculated the basic salary of a pensioner at Rs 31,550 (pay grade level-3).

Basic Pay –

Rs 31,550 Estimated Dearness Relief (DR) – 38% – Rs 11,989 per month
Existing Dearness Relief (DR) – 34% – Rs 10,727 per month
On increasing 4% Dearness Relief (DR) – Rs 1262 ( Annual dearness relief payment will come more every month
– Rs 15,144 (38% DR) after 4 per cent hike

What is the benefit to retired pensioner from cabinet secretary level?

After increasing the 4% dearness relief, the total DR will be 38%. If you calculate in the maximum salary range, then you will get dearness relief of Rs 21,622 every month on the basic salary of Rs 56,900. The total annual dearness relief will be Rs 2,59,464.

How is dearness relief calculated?

How will the DR be calculated and how will it be decided. If Dearness Relief (DR Hike) is to be increased by 4 percent, then it can be calculated on Basic Pension. If someone’s pension is Rs 20,000, then at the rate of 4 percent, it will increase by Rs 800 in a month.

The post DR Increased: Good news for pensioners, increase in dearness relief will give tremendous benefit, pension will increase up to ₹ 15,144 first appeared on Rightsofemployees.com.