The central government is expected to give a big gift to its millions of employees soon. The government led by Prime Minister Narendra Modi is likely to increase the DA once again in July. At the moment, there is talk of a 4 per cent increase in DA. If the dearness allowance is increased, it will be seen that the salaries of about 5 million central government employees will been increased from July. According to the information received next month, the AICPI index declined for two consecutive months but rose again in March. The index had declined to 125.1 in January. After that it had reached 125 points in February. However, in March, the index rose by 1 point to 126. That is why there is talk that the central government will increase the dearness allowance of its employees. The central government may announce a 4 per cent hike in DA from July 1.
DA is paid to government employees and pensioners to relieve inflation. According to the Seventh Pay Commission, DA is increased twice a year. The first increase in inflation was in January. The second can be done in July. The government's decision is based on inflation. With the rise in the AICPI index from March, the inflation allowance could rise by 4 per cent.
The government increased the DA by 3% earlier this year. Central employees are now paid 34 per cent dearness allowance. If the DA increases in July, the DA will reach 38 per cent. If the government decides to increase the DA, it will immediately benefit the central employees and increase their salaries.
If the DA is increased to 38% from July 1, the salaries of central employees will increase. It will benefit millions of employees. Employees with a basic salary of Rs 56,900 were getting an inflation allowance of Rs 19,346 per month. If the DA rate is increased by 38%, the monthly amount will be Rs 21,622. This means that the monthly salary of these employees will increase by Rs. 2,276 and Rs. 27,312 annually.