Today we have an interesting piece of news for Central government employees! The Central government is planning to increase the Dearness Allowance (DA) by 3% – considered effective from January 1, 2022. Along with this, it is expected that by Holi 2022, employees will also receive their pending DA Arrears.
Increase in DA by 3%
Notably, the current total Dearness Allowance (DA) is 31%, which might be increased to 34%. This rise will happen after the Central government hikes DA by 3% – taking it to 34%. The Dearness Allowance (DA) of Central government employees is updated two times a year between January and July. The DA is calculated by multiplying the current rate of dearness allowance by the base wage.
DA is given to government workers, public sector employees, and pensioners. It is given to the employees to help with their living expenses.
Complete calculation of DA for Central government employees
Dearness Allowance percentage = ((Average of AICPI (Base Year 2001=100) for the past 12 months-115.76)/115.76) x 100.
NOTE: AICPI – All-India Consumer Price Index
Calculation of DA Arrears for Central government employees
According to an earlier report, all Central employees will get their full salary in March, including the DA arrears – for January and February. A Zee Business report further clarified that Shiv Gopal Mishra of the National Council of JCM has said that the DA arrears of Level-1 employees varied from Rs 11,880 to Rs 37,554. Employees at Level-13 (7th CPC basic pay scale Rs 1,23,100 to Rs 2,15,900) or Level-14 (pay scale) will owe Rs 1,44,200 and Rs 2,18,200 in DA arrears, respectively.
