The government had increased the rate of allowance from 17% to 28%. Later in October, the rate of allowance was further increased by 3%.
With January 2022 already here, lakhs of Central government employees are waiting to receive the dearness allowance (DA) arrears that have been stopped for more than 18 months now. If the DA increases then the salary of Central government employees will increase automatically. However, it is still unclear how much DA hike will be implemented in January 2022. But, according to the data of the AICPI index, it is expected that the DA would increase by 3% in 2022.
Besides the DA hike, some Central government employees are also expected to get promotions in New Year. Some reports claimed that talks are also going on about the fitment factor before Budget 2022 and the Centre may take a final decision in this regard soon. It is to be noted that an increase in fitment factor means that the minimum basic salary of Central government employees will also increase in 2022.
An increase in 3% DA means that the total DA of Central government employees will be 34%. It means a Central government employee with a basic salary of Rs 18,000 will receive an annual dearness allowance of Rs 73,440.
The Narendra Modi government had increased the rate of allowance from 17 per cent to 28 per cent. Later in October, the rate of allowance was further increased by 3 per cent.
For the unversed, the DA is given out as the cost-of-living adjustment allowance that the government pays to the employees of the public sectors, as well as pensioners who worked in the same sector.
The finance ministry had stopped the DA hike in May 2020 due to the COVID-19 pandemic. The halt was lifted on June 30, 2021. The Indian Pensioners’ Forum or Bharatiya Pensioners Manch (BMS) has also appealed to PM Modi to clear the arrears of dearness allowance and dearness relief of central employees and pensioners.
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