Salary Hike: Good news for government employees before Holi! Will the salary increase again? How much will it increase..

After the formation of the 8th Pay Commission, the government is now going to give other good news to the central employees. The government can increase the dearness allowance of the employees even before Holi. However, no formal statement has been given by the government on this, but such confirmed news is coming from the sources. This time the dearness allowance is expected to increase by 2-3 percent. Let us tell you that the government increases the salary of the employees twice a year keeping in mind the rising inflation.

Along with DA, DR i.e. Dearness Relief is increased. This means that the benefit of dearness allowance is also available to retired employees on pension. Let us tell you that dearness and dearness allowance are currently given to government employees under the 7th Pay Commission.

What is dearness allowance?

Dearness Allowance (DA) is a payment that the government gives to its employees and pensioners to balance the effect of inflation. This is an additional part of the salary, which is revised from time to time based on the inflation rate. The government fixes it according to the Consumer Price Index (CPI), so that the purchasing power of the employees is not affected due to rising inflation.

How is the dearness allowance calculated?

The government calculates dearness allowance (DA) based on the Consumer Price Index (CPI). There is a fixed formula for this, which can be different for the employees of the central and state governments. DA is calculated for central government employees in this way:

DA (%) = [(CPI – 115.76) / 115.76] × 100

Where CPI represents the average consumer price index of the last 12 months and 115.76 is a fixed base number. DA is revised every six months and it is adjusted according to rising inflation.

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