Nod for DA hike likely at Sept 28 Cabinet meeting. 38% DA from July 2022

Central Government Staff can hope for good news ahead of festival time. A 4 per cent increase in the dearness allowance for the Central Government Employees is likely to receive the government nod soon. According to sources, the decision may be made during the Union Cabinet meeting on Wednesday (September 28). Once approved, with the 4% increase, DA will raise to 38%. The hike will also bring the Dearness Relief to 38%

Dearness allowance (DA) is given to government employees, while dearness relief (DR) is for pensioners to compensate for the rising prices of commodities.

The AI CPI-IW data will serve as the basis for the Dearness Allowance rise for the central government employees. Dearness Allowance increases are one of the most-anticipated pieces of news for CG staff. The Dearness allowance beginning in July 2022 will be based on the CPI-IW indexes from July 2021 to June 2022. The Union Cabinet agreed in March to raise the dearness allowance (DA) by 3% in accordance with the 7th Pay Commission, bringing it to 34% of the basic income.

The AI CPI-IW for the last twelve months are as given below

The Union Cabinet in March approved the increase of 3 per cent in dearness allowance (DA) under the 7th Pay Commission, thus taking the DA to 34 per cent of the basic income. According to a statement from the Prime Minister's Office, "the Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to release an additional instalment of dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners with effect from January 1, 2022, representing an increase of 3% over the current rate of 31% of the basic pay/pension, to compensate for price rise."

The DA increase benefits 65 lakh pensioners and more than 50 lakh government, workers.

For details on the Dearness Allowance calculation, check out the page New DA calculation formula as per the AI CPI-IW series with base 2016

Also, the picture is becoming clear about the expected Dearness Allowance from January 2023. A further 4% hike can be expected in the DA from January 2023. Check out our calculator at 📈 Expected Dearness Allowance (DA) from January 2023 Calculator