Fact Check: DA hike from the month of July 2022

There are a lot of reports in the media on the Dearness Allowance for Central Government Employees from July 2022. The reports show varying rates. Many of these reports show hikes of 5% and 6%. The central government staff has to keep in mind that these reports are meant just to exploit the central government employees' sentiments and expectations and are not backed up by any fact. Even reputed news houses like Zee and News18 show these inflated figures, which is unlikely. 

The Dearness Allowance rates for Central Government Employees is not something that the government decides but is calculated based on the inflation figures. It is calculated based on the 12-month average of the All India Consumer Price Index for Industrial Workers (CPI-IW). 

The dearness allowance from the month of July 2022 is calculated on the basis of the CPI-IW from July 2021 to June 2022. Now only the index for June 2022 has to be known for the DA calculation, with 11 other figures now available. Considering maximum changes on both upward and downward changes, it can be still found that the DA will be 38%.

Currently, the CPI IW stands at 129. To have a 39% DA, the CPI IW for June 2022 should reach 136.1, a rise of 7.1 points, which is impossible. The maximum month-to-month rise in the index over the last one year was 1.7 points in the month of April. 

StaffCorner has reported that the dearness allowance from July 1, 2022, in all respects is likely to be 38%, a hike of 4%. 

You can try yourself with the calculation

Calculate yourself: Expected Dearness Allowance (DA) from July 2022 Calculator

Calculate yourself: Expected Dearness Allowance (DA) from January 2023 Calculator