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New Delhi: After the recent cabinet approval on dearness allowance, DA has now become 34 percent of the basic income. With the hike in DA, there are now widely circulated media reports that 4 other allowances fixed on the basis of DA level may also increase. Here is the list.

1. DA is proportional to the basic pay. Consequently, the increase in DA will also increase the monthly provident fund (PF) of central government employees.

 

2. With the increase in DA, the gratuity amount of the employees will also be increased.

3. The hike in Dearness Allowance has also paved the way for an increase in the Traveling/Transportation Allowance and City Allowance of the employees.

 

4. There is also speculation in the media that the government is contemplating a hike in HRA as DA has been increased.

The Union Cabinet chaired by the Prime Minister Narendra Modi on March 30, 2022 has approved the release of an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, representing an increase of 3 from 01.01.2022. was approved. Over and above the existing rate of 31% of Basic Pay/Pension, to compensate for the increase in value.

 

The hike was approved as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 9,544.50 crore per annum. This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners.

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