In a relief for central government employees and pensioners, the Dearness Allowance (DA) and Dearness Relief (DR) are slated to be increased once again by the Centre, the decision of which was taken during a cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday.
According to a report, the DA has increased from 17 per cent to 28 per cent of their basic pay.
It has been gradually increasing since last year –
4 percent – January 2020
3 percent – June 2020
4 percent – January 2021
Hence, the total hike will be 28 percent (17+4+3+4).
For example, if an employee earns Rs 20,000 per month, his/her salary will increase by 11 percent i.e Rs 2200. Similarly, one can calculate their salary hike based on the basic pay.
Moreover, the Ministry of Labor has stated the figures of the All India Consumer Price Index for May 2021 previously, which increased by 0.5 points, taking it to 120.6.
The index needs to be above the 130 mark for DA to increase by 4 per cent. The data for June is currently awaited.
The total DA could have been around 31 per cent of the basic salary if a decision was taken on July 2021 DA hike (3 per cent).
The government is yet to take a final decision on the same.