The federal government recently announced an increase in Dearness Allowance and Dearness Relief for federal employees and retirees, respectively. The national government, led by Prime Minister Narendra Modi, has announced that DA and DR will be paid to salaried workers at a rate of 34 percent, up from the previous rate of 31 percent. 

The DA will be increased by 3% beginning January 1, 2022. In the face of rising fuel prices, oil prices, and inflation in general, the move will affect about 47.68 lakh central government employees and 68.62 lakh retirees.

The DA calculation, on the other hand, is based solely on the employee's basic pay, with no further allowances taken into account. This means that all central government employees who are due to receive updated wages in March as a result of the DA raise would only receive the increased amount based on Basic Pay calculations.

"The term 'Basic Pay' in the revised pay structure refers to the pay drawn at the prescribed Level in the Pay Matrix as per the 7th CPC recommendations accepted by the government, but does not include any other type of pay such as special pay," t

the Department of Expenditure (DoE) stated in the Office Memorandum (O.M.) data. - "The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the scope of FR 9(21"), according to the office memorandum.

Payments on account of Dearness Allowance involving fractions of 50 paise and more may be rounded to the next higher rupee, while fractions of less than 50 paise may be discarded, according to the department. "The payment of Dearness Allowance arrears shall not be paid before the date of salary release in March, 2022," it stated.

According to the notice from the Department of Expenditure, if an employee's base pay is Rs 18,000, he or she will receive a Dearness Allowance of Rs 6,120 following the latest raise. Previously, the employee was receiving Rs 5,580 in DA at a rate of 31%. This means that the latest DA hike has resulted in a Rs 540 increase.