The Union Cabinet is scheduled to 1 p.m. today meet at 1 p.m. today at the Parliament. The meeting presided by Prime Minister Narendra Modi is expected to take up the dearness allowance hike for the central government employees from January 2022. The meeting takes place during the second phase of the budget session, which is now underway. This is one of the most awaited central government employee news.
The cabinet ministers are expected to address the increase in the dearness allowance (DA) for central government employees, despite the fact that the agenda for the meeting has not yet been announced.
The Cabinet is likely to approve an increase of 3% in dearness allowance on Wednesday that will take the DA to 34%. This hike will also be awaited by the state government employees, for whom the hike will follow the centre government rates.
The decision on the DA by the cabinet is only a formality as the Dearness Allowance for Central Government Employees is calculated using the 12-month average of the CPI-IW index. The calculation of the DA is based on the approved formula. Also read: Expected Dearness Allowance from January 2021 Calculator
Once approved by the cabinet, the Finance Ministry will issue the office memorandum on hiking the DA before the Central government staff receive the hike. In all likelihood, the employees will get enhanced Dearness Allowance along with the April month salary. Also, the employees can expect to receive three months' DA arrears at once immediately.
However considering the steep fuel price hike and inflation, the DA hike of 3% will not be sufficient to compensate for the additional expenses.