The government has given the gift of dearness allowance to the central employees on the occasion of Durga Puja. The decision to increase dearness allowance was approved in the cabinet meeting on September 28.
Now it has been increased from 34 per cent to 38 per cent. The Office of Memorandum has been issued in this regard by the Department of Expenditure on October 3. When will get the benefit of this decision of the government, who will get it and how, let us understand all these things in 5 points.
1>> Central employees will now get dearness allowance of 38 percent not 34. This allowance will be on the basis of basic pay. The revised rate will be applicable from 1st July 2022.
2>> The Seventh Pay Commission has fixed the ‘Basic Pay’ on the basis of different levels. This proposal has been fixed according to the revised pay structure. It has also got approval from the central government. When we talk about basic pay, there is no special allowance included in it.
3>> Let us tell you that basic pay is an integral part of the salary of any central employee. This is treated as salary within the purview of FR9(21).
4>> In the notification issued by the Department of Expenditure, it has been clearly said that if there is 50 paise and more in the payment of dearness allowance, it will become a full rupee. If it is less than that, it can be ignored.
5>> According to the notification, the benefit of Revised Dearness Allowance will also be available to the civilian employees of Defense Services. This expenditure will come under the head of that particular Defense Service Estimate. In this regard, separate notifications for Armed Forces Personnel and Railway Employees will be issued by the Ministry of Railways and Ministry of Defense.
6591 crore annual burden on the treasury
Let us tell you that according to the press note issued by the Press Information Bureau on September 28, the increase in Dearness Allowance will put an annual burden of 6591 crores on the government exchequer. For the financial year 2022-23, this burden will be only Rs 4394 crore, as there are only eight months from July to February 2023.
