Lakhs of Government employees may get a hike in their dearness allowance (DA) which will be announced next month, i.e. in July 2022. The DA is announced twice a year – in January and in July.
It is being speculated that due to a rise in retail inflation, Government may factor that in the DA amount for July 2022.
The announcement regarding DA is normally made in March and September every year. However for one-and-a-half years after December 31, 2019, no hike or change was effected in the DA amount due to Coronavirus pandemic.
The Finance Ministry had stopped the DA hike from January 2020 until June 30, 2021, due to the Pandemic. The DA hike restarted in July last year.
Subsequently, on the basis of the 7th Pay Commission's recommendations, DA for all Central Government employees was hiked in July 2021 to 28 per cent from 17 per cent.
Later in October 2021, DA was again hiked by three per cent and the increased amount also became effective from July 1, 2021.
Due to these two hikes, from July 1, 2021 itself, all Government employees had started receiving DA at the rate of 31 per cent.
After that on January 1, 2022 also, a three per cent hike in DA was announced, after which Government employees have been receiving DA at 34 per cent rate.
Now, whatever hike the Central Government will implement in DA, it will come into effect from July 1, 2022 onwards. All Central government employees as well as pensioners will also get arrears due to them from July 2022 till the period the hike in DA comes into effect.