According to media reports, the Central government could increase the dearness allowance (DA) of its employees in July 2022.
The DA of government employees is revised twice a year in January and July.
The percentage of the hike depends on the retail inflation data. Considering the ongoing inflation rate, it is reportedly expected that the government could increase the DA by 4 per cent, meaning that the dearness allowance of the Central government employees will increase to 38 per cent from 34 percent.
The Central government had last increased the DA by 3 per cent in the month of March 2022. At that time, the dearness allowance was increased from 31 per cent to 34 per cent. The move benefitted more than 50 lakh central government employees and 65 lakh pensioners.
The Central government employees had uplifted the freeze on DA and DR hike in July last year. Since then, the Dearness Allowance of employees has been increased on several occasions.