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The Essential Guide on Dearness Allowance for Central Government Employees

Avatar of Sneha Verma
The Essential Guide on Dearness Allowance for Central Government Employees

On August 1, the Madhya Pradesh government increased the Dearness Allowance (DA) for the state’s more than 7.5 lakh public employees from 31 to 34 percent.

Making the DA equal to the central government was decided by the government.DA modification for central government employees and pensioners is scheduled to be announced soon, according to reports.

Employees of the Madhya Pradesh government will begin receiving the new DA in August 2022, and they will be paid the increased amount in September.The Union Cabinet is likely to raise the daily allowance (DA) for all central government employees and pensioners in order to account for the rising inflation rates since February of this year as well as the increase in the cost of necessities.

After January, DA will undergo its second modification. The DA is reportedly expected to increase by between 3 and 4%.

The Union Cabinet agreed a further 3% increase in DA for all central government employees in October of last year, which will take effect on July 1, 2021. All central government employees began getting 31% DA as a result of this decision on July 1, 2021.

According to the current DA rate of 34%, an employee of the central government who earns a base wage of 20,000 rupees per month will receive DA of 6,800 rupees.

If, as some reports say, the Union Cabinet approves a 4% increase in DA, the employee will get another raise of 800 per month. At the increased DA rate of 38%, the monthly total will be 7,600.If the DA is increased to 38%, a worker earning a base income of 20,000 will receive an annual benefit of 91,200.

The central government planned to raise the DA by an additional 3% in January 2022, bringing the total amount received by all government employees to 34%.

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