This State Hikes DA For 7.5 Lakh Govt Employees To 34%; Central Govt Employees Expecting DA Hike Now

The Madhya Pradesh government, on August 1, hiked the Dearness Allowance (DA) to 34 per cent from the existing 31 per cent for over 7.5 lakh government employees in the state. 

The raise will come into effect from August 2022 and the employees will receive the increased amount in their September salary. 

The government’s decision has been taken to make the DA at par with the central government. 

Hike announcement coming soon

The Union Cabinet is likely to increase the DA for all the central government employees and pensioners to account for increasing inflation rates and costlier essential commodities.

This will be the second revision of DA after January.

According to reports, the DA is likely to be hiked between 3 and 4 per cent.

Recent DA Hikes

The central government announced an increase in July 2021 as per the recommendations of the 7th Pay Commission.

It raised the DA from 17 per cent to 28 per cent.

Last October the Union Cabinet approved another 3 per cent hike effective from July 1, 2021. 

All central government employees effectively started receiving 31 per cent DA from the same date.

This January, DA  was hiked by another 3 per cent, and now all the government employees have received DA at 34 per cent.

For pensioners too, the dearness relief (DR) was increased by the same amount.

DA Announcements

Typically DA is announced twice a year in January and July by the Central government.

Announcements for both the revisions are generally made in March and September every year. 

However, due to the pandemic the DA saw no hike for almost 18 months after December 31, 2019. 

The hike was frozen between January 2020 and June 2021 and was finally increased in July last year.

What is Dearness Allowance?

DA is paid to central government employees to adjust to the increasing cost of living. 

The rate is decided or revised from time to time by the centre, considering the retail inflation rates.

The benefit also applies to central government pensioners or family pensioners.

How much increase in salary is expected?

A central government employee with a basic salary of ? 20,000 per month receives a DA of ? 6,800 per the current DA rate of 34 per cent. 

A hike of 4 per cent if approved by the Union Cabinet will bring another hike of ? 800 per month for the employee.

With this the total DA per month will reach ? 7,600 at the hiked DA rate of 38 per cent.

An employee with a basic salary of ? 20,000 per month will receive an annual benefit of ? 91,200 if the DA is enhanced to 38 per cent.