FINANCE

7th Pay Commission: Dearness Allowance for Delhi government employees hiked by 4% ahead of Diwali

New Delhi: In line with the Central government, the Delhi government on Friday announced a 4 per cent hike in the Dearness Allowance (DA) of its employees. The Arvind Kejriwal government issued an order to increase the DA of its employees by 4 per cent.

Endorsing the revision of rates by the Centre, the finance department of the Delhi government has forwarded the details to its concerned departments and autonomous bodies, according to an official order.

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Ahead of the Diwali festival, the Union Cabinet on September 28 increased the dearness allowance (DA) and dearness relief by 4 per cent effective July 1, 2022. Union minister Anurag Thakur announced that the government has allocated Rs 12, 852 crore for the benefit of over 50 lakh government employees and about 62 lakh pensioners ahead of the festive season.

Central employees DA hike

The latest hike takes the DA to 38 per cent, up from 34 per cent. A 4 per cent DA hike translates to an increase of Rs 720 in their salary. For example, if the basic salary of a central government employee is Rs 18,000, then according to 34 per cent, he is entitled to receive DA of Rs 6,120.

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What is Dearness Allowance?

A part of the remuneration of government employees and pensioners, DA is aimed at offsetting the inflationary impact on employees’ salary. Under the 7th Pay Commission, the government revises dearness allowance twice a year – in January and July. This allowance is also based on whether an employee is located in urban, semi-urban, or rural areas.

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