DA Update: How Dearness Allowance is Calculated

 DA Update: How Dearness Allowance is Calculated 

Earlier, In July 2021, the Centre had increased the DA and DR for the central government employees and pensioners, respectively, to 28 per cent from 17 per cent after a long pause. Again in October 2021, the central government employees witnessed a jump of 3 per cent in dearness allowance. Then, the dearness allowance for the central government employees rose to 31 per cent, effective from July 2021. Now, from January 2022, DA and DR will be paid to the salaried at a rate of 34 per cent, increasing from the earlier rate of 31 per cent.

The government has already increased DA for railway employees along with the release of arrears, under the 6th Pay Commission. The allowance was increased by 14 per cent.

DA Update: How Dearness Allowance is Calculated 

The Central Government had merged 50% of the Dearness Allowance (DA) with the basic pay w.e.f. 01.04.2004 and the Dearness Allowance continued to be calculated with reference to the AICPI (IW) average as on 1st January, 1996 of 306.33 without changing the index base consequent to the merger. Accordingly, Dearness Allowance (DA) at following rates were sanctioned from 01.07.2004 till 01.07.2007.

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