For central personnel and retirees, good news is on the way once more. They will, however, have to wait two to three months for this. This time around, central employees' and pensioners' dearness allowances and dearness relief are likely to rise by up to 4%.

In fact, the All India Consumer Price Index (AICPI) increased by a single digit in March, implying that the dearness allowance will increase once more. In July-August, it is possible that employees' Dearness Allowance (DA) and Dearness Relief (DR) will increase by up to 4%.

In fact, central employees' dearness allowance and dearness relief are revised twice under the Seventh Pay Commission. The first is given in January, while the second is provided in July. The administration had hiked the DA and DR by 3% on March 30. Following then, it grew from 31% to 34%.

Dearness Allowance is granted to government employees in order to improve their living situations. Government personnel, public sector employees, and retirees receive it. The rationale for this is that the employees' standard of living should be maintained despite rising inflation.

If the DA and DR are revised in July, it is possible to see another 4% increase. After two consecutive months of fall, the AICPI index increased by one point in March 2022. This is why there is renewed optimism for increasing DA. However, the data for April, May, and June are still pending, and only then will a final judgement be made.

In January and February, there was a modest decrease. In January, the data had dropped to 125.1, and in February, it had dropped to 125. In March, it reached a new high of 126. If it continues to rise in the next months, the DA will rise as well. According to reports, DA may rise by 4% again in July. More than 50 lakh government employees and 65 lakh retirees will profit from this.

Employees with a basic pay of Rs 18,840 will receive a dearness allowance of Rs 6,840 if the dearness allowance is increased to 38 percent. These employees are currently receiving Rs 6,120 in DA at a rate of 34%. His monthly pay will therefore increase by Rs 720. The annual salary will rise by Rs 8,640 in this way.

The Center increased the dearness allowance and dearness relief from 17 to 28 percent in July 2021. Due to the coronavirus pandemic, the central government halted DA for nearly a year and a half. In October 2021, the DA for central government employees climbed to 31%, with further 3% increase planned. It has now been increased from 3% to 34%.