Guwahati: Government employees are expected to get good news as they may get a hike in their dearness allowance (DA), which will be announced next month i.e. in July 2022.

As the DA is revised twice a year in January and July, it is set to be revised next month.

As the All India Consumer Price Index is prevailing high, the chances of government employees getting a raise in dearness allowance is also high. DA is revised based on the changes in the All India Consumer Price Index. 

It is speculated that due to a rise in retail inflation, the government may factor that in the DA amount for July 2022. The retail inflation in May stood at 7.04 per cent, which is above the RBI’s comfort level of 2-6 per cent.

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 the coronavirus 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.

As per reports, the dearness allowance is likely to be increased by four per cent in July, which would take the total DA to 38 per cent.

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.

Besides the hike in DA, government employees may also get a hike in their basic pay with the inclusion of the fitment factor, as there are speculations that Government may also soon approve a hike in the fitment factor.

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