If you are a central government employee or are among the government pensioners, then there can be great news for you. The government may also soon announce an increase in the Dearness Allowance (DA) and the Dearness Relief (DR). This increase will have a direct impact on the salary of employees and the monthly pension of pensioners.

What are Dearness Allowance (DA) and Dearness Relief (DR)

Dearness Allowance (DA) is an important part of the salary of government employees, which is given to reduce the impact of inflation. Similarly, pensioners get Dearness Relief (DR), which is increased in line with DA. The government always revises DA and DR twice in every year – in January and July.

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How much will be the increase this time

According to experts, this time the dearness allowance can increase from 2% to 4%. Some experts believe that this time the government can increase DA by 3% to 4%, which will give great relief to the employees and pensioners.

How much will it affect the salary

Currently, central government employees are getting 53% DA. If the government announces a 2% increase, it will become 55%.

For example

If the basic salary of an employee is Rs 20,000 per month, then after a 2% increase, his salary will increase by Rs 400 per month.

Similarly, pensioners will also get the benefit of increase in DR, so that they can feel some relief from the impact of inflation.

How is DA decided

Dearness allowance is calculated mainly on the basis of All India Consumer Price Index (AICPI-IW), which is published by the Labour Bureau under the Ministry of Labour. The government decides to revise the DA on the basis of this data.

Indications from RBI report

The Governor of the Reserve Bank of India (RBI) recently indicated that the Consumer Price Index-based inflation rate (CPI Inflation Rate) could be 4.8% in the current financial year. This has increased the expectation that the government can increase DA by more than 2%.

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