There could be a huge increase in the DA of central government employees. The dearness allowance is likely to be increased from 4 per cent to 5 per cent. The second phase of this year's dearness allowance is expected to increase from July 1, 2022. Earlier, it was estimated that the dearness allowance would be increased by 4 per cent. Now, following the recent figures from the All India Consumer Price Index for Industrial Workers, the dearness allowance is likely to be increased from 4 per cent to 5 per cent.
At present, central government employees get 34 per cent dearness allowance. The dearness allowance was expected to increase to 38 per cent. However, the inflation allowance is expected to increase by 5 per cent. This is according to the All India Consumer Price Index for the month of April.
In view of rising inflation in the country, the central government is planning to increase the dearness allowance (DA) in July. If this happens, there is a possibility of a big increase in the salaries of central employees. If the dearness allowance of central employees is increased from 34 per cent to 39 per cent, the salary of central employees can be increased from Rs 8,000 to Rs 27,000.
According to the data, the central government's decision will affect 47 lakh employees and 68 lakh pensioners. Along with inflation, EMIs are also becoming more expensive. The trend is to increase the DA from January 1 and July 1 in general. So now the central employees are eagerly waiting for this.
The DA and DR are revised twice a year in January and July, based on retail inflation data from the central government. Inflation in the country has surpassed the RBI's forecast. The country's retail inflation has gone above 6 per cent of the RBI's tolerance. Retail inflation rose to 7.79 per cent in April from 6.95 per cent in March.