New Delhi: An increase in Dearness Allowance (DA) has been announced for the government employees of Madhya Pradesh on August 1. With an increase of 3 percent from the existing rate of 31 percent for 1.5 lakh employees in the state, now the rate of dearness allowance has been increased to 34 percent. This rate has been implemented for August, 2022 and the employees will get the increased DA along with their September salary. The Union Cabinet may also soon increase the dearness allowance for central employees. It is expected that keeping in mind the rising inflation rate from February this year and the rise in the prices of essential commodities, the central government will give an appropriate hike.
According to media reports, central government employees can also get a hike of three to four percent on DA. If there is a hike, then the new rate of dearness allowance will be 38 percent. This will be the second amendment after January this year. Anyway, under the rules of the Pay Commission, the government revises the dearness allowance and dearness relief rate twice in a financial year.
What is Dearness Allowance?
To provide relief amid rising inflation, dearness allowance is given to government employees by adding them to the salary. Keeping in mind the government’s retail inflation rate, it is revised from time to time. The government also gives this relief to the pensioners of the central government in the form of DR or dearness relief. At present, about 47.68 lakh central employees and 68.62 lakh pensioners get this relief.
When is DA Hike?
The central government revises the dearness allowance twice a year. Usually DA revision takes place twice in March and September. The new rate is applicable from January and July. However, the revision of DA has been put on hold for almost 18 months from December 31, 2019 onwards due to the COVID-19 pandemic. There was no change in DA from January, 2020 to June, 2021. After this DA was increased last year. At that time it was increased from 17 percent to 11 percent directly to 28 percent. Then it was increased to 31 percent in October, 2021. In January 2022, there was an increase of three per cent again and now it is applicable at the rate of 34 per cent.
How much can the salary increase?
Let us assume that the basic salary of a central employee is Rs 20,000 per month. So at the current rate of 34 per cent, he is getting DA of Rs 6,800 per month. According to reports, if there is a DA hike of up to four per cent, the rate will go up to 38 per cent and the amount will increase by Rs 800 per month to Rs 7,600. That is, you will get a profit of Rs 9,600 annually. Accordingly, the annual DA of an employee with a basic salary of Rs 20,000 will be Rs 91,200.
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