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    DA Hike: The 4% Dearness Allowance Increase Will Bring 47 Lakh Central Employees Holiday Cheer

    DA Hike: A total of 68.62 lakh pensioners and 47.68 lakh central government employees would benefit from the 4% increase in Dearness Allowance.

    The proposal to raise the dearness allowance (DA) for central government employees and retirees from 31% to 38% of the base wage, an increase of 4%, with effect from July 1, 2022, was agreed by the cabinet on Wednesday.

    DA Hike

    Since the latest dearness announcement hike’s effective date is July 1, the staff will be paid the arrears with their most recent salaries as a holiday gift to the roughly 47.68 lakh central government employees and 68.62 lakh pensioners. This benefit also applies to civilian employees and those working in the defence industry.

    How much burden will it put on Govt.

    The additional budgetary effects of this Dearness Allowance increase for Central Government personnel are expected to be $6,591.36 billion annually and $4,394.24 billion in the fiscal year 2022–2023 (July 2022–February 2022).

    According to estimates, the rise in Dearness Relief for retirees will cost an additional Rs. 6,261.20 crore annually, and Rs. 4,174.12 crore in fiscal year 2022–23.

    The cumulative annual impart on the exchequer from Dearness Allowance and Dearness Relief would be $12,852.56 billion, and in the fiscal year 2022–2023—that is, from July 2022 to February 2023—the impart would be $8,568.36 billion.

    Every year on January 1 and July 1, the central government adjusts the dearness allowance and dearness relief; however, the decision is often publish in March and September.

    The proposal to raise the dearness allowance (DA) for central government workers and the dearness relief (DR) for retirees by 3% to 34 percent of the base wage from 31 percent before had been agree by the Cabinet in March. Whereas The new rates would take effect on January 1, 2022.

    The Reserve Bank of India increased the DA by 4% to 38% of basic salary as a result of consumer price inflation rising over the top limit of the intended range of 2–6% per month.

    DA Hike: What it means

    On a basic income of 18,000, everyone who is pay according to the 7th Pay Commission will get an increase in DA of 720, and this increase will be 1,000 per month if the basic salary is 25,000.

    Similar to this, with the 4% rise in dearness allowance, individuals receiving a basic income of 50,000 will now receive a benefit of $2,000 each month, while those earning a basic salary of 100,000 would receive a benefit of $4,000 in total compensation.

    Beginning on July 1, the award of dearness relief (DR) will now be available to central government retirees and family pensioners at the same revise rate that has been establish for the employees. The amount of DR payable to each retiree will be determine by the pension disbursing agencies, including the nationalised banks, based on their unique circumstances.

    DA Hike: Who will get benefits

    The central government pensioners, civilian central government pensioners/family pensioners, members of the armed forces, civilian pensioners paid out of the defence service, all India service pensioners, railroad pensioners/family pensioners, and pensioners receiving a provisional pension will all be subject to the revised rates.

    All personnel paid according to the 7th Pay Commission received a dearness allowance at a rate of 17% until December 31, 2019, after which there was no increment or revision required by Covid for an additional 1.5 years.

    Later, on July 1, 2021, the dearness allowance was increase by 11% to 28% before being enhance once again by 3% in October 2021. All central workers’ salaries and pensions have included DA as of July 1, 2021, at a rate of 31%.

    Previous Increase

    The dearness allowance was then raise by 3% in January 2022, and a further 4% will be add starting in July, bringing the DA to 38% of basic salary.

    The PIB tweeted that the Cabinet has approved the delivery of an extra payment of Dearness Allowance and Dearness Relief at 4% to Central Government workers and pensioners, due on July 1st, 2022.

    Anurag Thakur, a Union minister, said during a post-cabinet press conference that the cabinet has resolved to prolong the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for an additional three months.

    After the COVID-19 pandemic broke out, the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) programme was establish.

    Read: PFI ban for 5 Years: What can happen to the organisation. Whereas its members now that the government has outlawed PFI?

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