The Union Cabinet is likely to increase the DA for Central Government Employees for the second half of this year.
For 7.5 lakh employees, DA was also hiked by Madhya Pradesh Government, on August 1, by 4 per cent to 34 per cent from the earlier of 31 per cent.
The employees will start getting their improved salaries from September 2022. As the new rates are in effect from August 2022 in Madhya Pradesh.
Union Cabinet Likely To Increase DA
The Union Cabinet for the Central Government employees are due to set the DA rate for the second half of the year and the Cabinet is likely to increase it for the Central employees and pensioners while undertaking the inflation factor surging since February of this year because of which prices of essential commodities are inflated.
As per the reports, DA will be likely to rise 3 to 4 per cent, and this will be the second hike after January.
DA Rise As Per 7th Pay Commission
According to the 7th pay commission, the Central Government announced a DA hike in July for all. After the hike DA increased from 17 per cent to 28 per cent.
Last year, in October, “the Union Cabinet approved another 3 per cent hike in DA for all the central government employees effective from July 1, 2021. After this decision, all central government employees effectively started receiving 31 per cent DA from July 1, 2021.”
DA was hiked by the Central Government in January also by 3 per cent which resulted in the final of 34 per cent DA for all its employees.
This time, the DA increase was as per benchmarked system, which was recommended under the 7th pay commission. As for pensioners, DR was also hiked by the same amount.
A hike in DA helps 47.68 lakh Central Govt. employees and an increase in DR supports 68.62 lakh pensioners.
Routinely, DA is announced twice a year, in January and July by the Central Government. On the other hand every year the revision announcements are made in March and September.
But due to the COVID situation since December 31, 2019, the DA announcements were not made.