The Department of Expenditure, Ministry of Finance has issued an office memorandum for the revised rates of dearness allowance to central government employees. According to this notification, the revised rates of dearness allowance will be applicable from July 1, 2022.
Along with this, now another allowance is being considered to increase. According to the information, HRA hike can also be announced along with DA hike. Actually, with the increase in DA, revision in HRA is also expected.
Five important things of the notification issued by the government that the employees of the central government should know:-
1. New Rates
The rate of Dearness Allowance payable to Central Government employees has been increased from 34% to 38% of basic pay with effect from July 1, 2022. In other words, DA has been increased by 4%.
2. Calculation of DA on Basic Pay
For salary calculation under 7th Pay Commission, DA has to be calculated on the basic salary of the employee. Suppose the minimum basic salary of a central employee is Rs 25,000, then his dearness allowance will be 38% of 25,000. Basic pay does not include any other type of pay like special pay etc.
3. Dearness Allowance will not be treated as pay under
FR 9(21). As per the notification, 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).
4. Understand Calculations
OM Accordingly, in payment of dearness allowance, fractions of 50 paise and above may be rounded off to the next higher rupee and fractions less than 50 paise may be ignored.
5. Separate orders will be issued for Railway, Defense personnel. Separate orders will be issued
by the Ministry of Railways and Ministry of Defense regarding the revised rate of Dearness Allowance for Armed Forces personnel and Railway employees. Dearness Allowance is given to the government employees of the Center and the states to improve their cost of living level. Even after rising inflation, the standard of living of the employee does not matter, so this allowance is a part of the salary structure. Dearness allowance (DA) is given to government employees, public sector employees dearnessand relief to pensioners.
