Mumbai, June 15: It seems there will be some good news for the 48 lakh central government employees and 67 lakh pensioners amid the record inflation rate. According to several reports, the Centre is very likely to increase the dearness allowance (DA) by 5 percent from July. However, there is no official confirmation on the same as yet.
Based on the recommendations of the 7th Pay Commission, every year, the Centre hikes the DA twice. The first hike takes place in January while the second DA hike mostly happens in July. The dearness allowance hike is usually based on the All-India Consumer Price Index (AICPI). 7th Pay Commission Latest Update: Centre Likely To Announce 5% Hike in Dearness Allowance for Government Employees; Check Details.
Earlier this year, the Centre increased the DA by three percent thus taking the DA from 31 to 34 percent. This benefitted over 47.68 lakh central government employees and around 68.62 lakh pensioners. With the inflation rate soaring high across the country, the DA hike will bring some much-needed relief for the government employees.
According to several reports, there is a possibility that the DA hike could be around five percent and it’s most likely as the All-India Consumer Price Index (AICPI) stood at around 127 points. In April, the retail inflation reached an eight-year high of 7.79 per cent. In January and February, the AICPI stood at 125.1 and 125 while in March it crossed 126. Children of Live-In Relationship Couple Have Right to Paternal Property, Says Supreme Court.
If the AICPI continues to remain at 126 and above then the DA is likely to increase by 4 to 5 percent. It must be noted that the DA is given to government employees, while the dearness relief (DR) is given to pensioners. A 4 to 5 percent increase in the DA will take the present 34 percent to 38 to 39 percent.
An increase in DA will also increase the Provident Fund and the gratuity contribution of the employees. The reason for the same is that the PF and gratuity amount will be deducted from the basic salary and DA of the employees. Furthermore, a hike in DA will also clear the way for an increase in transport allowance and city allowance for the employees. Chhattisgarh Shocker: Man, Woman Paraded Naked in Kondagaon Over Extramarital Relationship, 4 Arrested.
Reports also claim that the government will also increase the HRA of central employees as well. At present, the employees are getting 27%, 18%, and 9% HRA which are distributed based on urban, semi-urban, and rural sectors.
(The above story first appeared on Today News 24 on Jun 15, 2022 05:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website todaynews24.top).
//vdo (function(v,d,o,ai){ai=d.createElement('script');ai.defer=true;ai.async=true;ai.src=v.location.protocol+o;d.head.appendChild(ai);})(window, document, '//a.vdo.ai/core/latestly/vdo.ai.js');
//colombai try{ (function() { var cads = document.createElement("script"); cads.async = true; cads.type = "text/javascript"; cads.src = "https://static.clmbtech.com/ase/80185/3040/c1.js"; var node = document.getElementsByTagName("script")[0]; node.parentNode.insertBefore(cads, node); })(); }catch(e){}
} });