If you are a central government employee or included in the list of government pensioners, then very good news can come for you! The government may soon announce an increase in Dearness Allowance (DA) and Dearness Relief (DR).

This increase will have a direct impact on the salary of employees and the monthly pension of pensioners, which will give them some relief from inflation. This news will bring a smile to the faces of millions of employees and pensioners!

What is Dearness Allowance

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

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How much can the increase this time

According to experts, this time the dearness allowance can increase by 2% to 4%. Some experts also believe that the government can increase DA by 3% to 4% this time, which will give great relief to employees and pensioners. If this happens, it will reduce their financial burden to a great extent.

How much will be the impact on 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 ₹ 20,000 per month, then after a 2% increase, their salary will increase by ₹ 400 per month. Similarly, pensioners will also get the benefit of increase in DR, so that they can feel some relief from the effects of inflation. This small increase also means a lot to employees and pensioners.

How is dearness allowance decided

Dearness allowance is mainly calculated 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 based on this data. This index plays an important role in assessing the inflation situation in the country.

Signs of rising inflation

Recently, the Governor of the Reserve Bank of India (RBI) has indicated that the Consumer Price Index based inflation rate (CPI Inflation Rate) may be 4.8% in the current financial year. This has further increased the hope that the government can increase the DA by more than 2%. Given the rising inflation figures, this increase can prove to be a necessary step for employees and pensioners.

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