da rise: by how much will the salary of central government employees increase due to the rise of DA?

The government has increased the High Cost Allowance (DA) component for central government employees from 3% to 34% effective January 1, 2022. The increase in the AD will benefit central government employees , pensioners from the central administration and family pensioners receiving a pension from the central administration. .

The latest hike would benefit 47.68 lakh central government employees and 68.62 lakh pensioners, a government press release said on March 30, 2022.

A rise in AD results in a rise in the salary of government employees. So how much will the salary of a central government employee increase in real monetary terms after a 3% rise in the DA? The increase in the DA is calculated on the base salary of a State employee.

Let’s say the base salary of a junior central government employee is Rs 18,000 per year. Previously at the rate of 31%, the central government employee received a DA of Rs 5,580. Now, after being increased to 34%, the same government employee will now receive a DA of Rs 6,120. So, due to the increase in the DA, his salary increased by Rs 540.

For newly recruited Class I officers, the base salary is Rs 56,100. A 3% rise in DA will result in a rise in DA of Rs 1,683 to Rs 19,074 from Rs 17,391 earlier.

Read also :
DA for central government employees increased to 34%

Similarly for state pensioners and family pensioners receiving a state pension, the increase in the relief of high cost (DR) will be calculated on the amount of the basic pension.

The percentage of the dearness allowance is reviewed and reset/increased by the government twice a year, on 1 January and 1 July.

What is high cost allowance / high cost relief?

The dearness allowance is generally received by government employees to compensate for rising inflation. The decision announced today will put more money in the hands of government employees and pensioners.

Dearness Allowance/Dearness Relief is paid to central government employees/retirees to adjust the cost of living and protect their basic salary/pension against real value erosion.

William M. Mayer