There is a good news for around 48 lakh central government employees and 67 lakh pensioners. The Centre is likely to raise their dearness allowance (DA) by another 5 percent from July onwards, according to media reports.
Last time, DA was increased by 3 percent to 34 percent for government employees with effect from January 1, 2022. With inflation in the country soaring at recording levels, the DA hike will bring some relief for the government employees. According to media reports, given the All-India Consumer Price Index (AICPI) at round 127 points, DA hike is likely to be around five per cent. The DA is revised two times in a year — January and July.
The retail inflation, based on CPI, in April stood at an eight-year high of 7.79 per cent.
Before this, the Centre had in July 2021 hiked DA and dearness relief (DR) for the central government employees and pensioners, respectively, to 28 per cent from 17 per cent after a long pause. DA is given to government employees, while dearness relief (DR) is for pensioners.
In October 2021, the central government employees received 3 per cent jump in dearness allowance. Then, the DA for them rose to 31 per cent, effective July 2021.
The AICPI in January stood it 125.1 points, which dropped to 125 in February. However, in March, the Index again jumped one point to 126 points. The AICPI in April jumped to 127.7 points. Data for May and June will now be closely watched for. If the figures in those months remain above 127, the DA may be hiked by five per cent, according to media reports.
