DA Hike Latest Update: Government Raises Dearness Allowance Of Government Employees, Pensioners

DA Hike Latest Update: Government Raises Dearness Allowance Of Government Employees, Pensioners



DA Hike Latest Update: The government has hiked the dearness allowance (DA) component for central government employees by 4% effective from July 1, 2022. The DA has been hiked to 38%. Apart from DA hike, the government has also hiked the dearness relief (DR) for pensioners with same percentage. The hike in DA will benefit central government employees, central government pensioners and family pensioners getting pension from the central government.

DA has been hiked to 38%: After today’s hike of 4 per cent, the total DA paid to government employees will reach 38 per cent. DA is a part of the salary which is calculated as a specific percentage of the basic salary which is then added to the basic salary.

The DA hike will result in an increase in wages for approximately 52 lakh Central government employees. State governments are also likely to follow suit. The hike in DA will come as a major relief to workers amid skyrocketing inflation. The DA is revised by the government usually twice in a year — January and July.

Hike In DA: According to the Press Information Bureau (PIB) press release, “The Cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022. The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.”

How is DA calculated?

The hike in DA is calculated on the basic pay of a government employee. Similarly for government pensioners and family pensioners receiving pension from the central government, the hike in dearness relief (DR) will be calculated on the basic pension amount. The basic pension amount will be mentioned on in your Pension Payment Order (PPO).

PM Garib Kalyan Anna Yojana: Apart from DA hike, the Union Cabinet could also decide to extend the PM Garib Kalyan Anna Yojana for another 3 months till December. The cost to state exchequer will be around Rs 40,000 cr.


The Union Cabinet has also approved many railway redovelopment projects also. The cabinet has approved production linked bonus for railway employees, Zee Business has learnt thrugh its sourses. Fo non-gazetted employees, a proposal for 78-day bonus has been received. An estimated 11 lakh employees will benefit from it. The additional cost for Railway will be around Rs 2000 cr.


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