Overview of the DA Increase
The dearness allowance (DA) has been also raised to 16% for central government employees, which is a big step forward. This adjustment has been made in view of the recommendations of the seventh pay commission for a relief against inflation. The announcement has been made at a time Modi government is still considering different compensation quantification.
Passage through Cabinet for More Relief
Earlier this year, the central cabinet has cleared one more installment of dearness relief for employees and pensioners to ease the increasing costs. The new total DA figure is now 50% after a 4% rise. This change affects around 49.18 lakh employees and 67.95 lakh pensioners. With an expected further rise of 4%, the DA may go up to 54%.
State Level Rise in Rajasthan
However, while the central level adjustments are more focused, the Rajasthan government has recently given a handsome 16 percent increase in DA for state employees and 9% for pensioner. This news was revealed by Chief Minister Bhajanlal Sharma through his social media account, where he stated that dearness allowance of employees in fifth pay commission has gone up from 427% to 443% and employees in sixth pay commission from 230% to 239%.
Updates for Bank Employees
The management has also through The Indian Banks’ Association (IBA) announced a steep hike for the DA for the bank employees. As per the recent circular issued by the government, the DA of all the staff and officers will increase to 15.97% of their salary from May 2022 to July 2024.
Looking Ahead
Central employees are still waiting for information about the second tranche of DA for the previous fiscal year. The current status of 50% is likely to rise by 4%, and move up to as much as 54%. This prospective hike is welcome especially because it will be useful in giving additional support to employees during straitened conditions.