New Delhi: The Central Government has increased the Dearness Allowance (DA) of the employees receiving salary under the Fifth and Sixth Pay Commission. After this increase, the dearness allowance of employees taking salary under the Sixth Pay Commission has increased from 203 percent to 212 percent. The new rates of DA will be deemed to be applicable from July 1, 2022. Apart from this, the DA of central employees taking salary under the Fifth Pay Commission has been increased by 15 percent to 396 percent. The increase for these employees will also be considered applicable from July 1.
Dearness Allowance is decided on the basis of the basic salary of an employee. If the basic salary of a central employee is Rs 43000 per month, then he would have got Rs 87,290 under the old DA (203 percent). At the same time, after the DA is 212 percent, it will increase to Rs 91,160. This will increase his salary by about Rs 3800. The Department of Expenditure (DOI) issued an office memorandum on October 12 informing about the DA hike.
What is the reason for the DA increase?
The DA and DR (Dearness Relief) of employees taking salary or pension under the Seventh Pay Commission was increased from 34 percent to 38 percent in September. Since then, employees/ex-employees taking salary or pension under the Sixth and Fifth Pay Commission were demanding to increase DA or DR.
What is Dearness Allowance?
The government gives allowances to its employees and pensioners to fight inflation. This is called Dearness Allowance (for employees) and Dearness Relief (for pensioners). The central government reviews it in July and January. DA also depends on the sector in which the employee works. That is, the DA of employees working in urban areas, small urban, and rural areas is different.
