More Salary Hike For Employees Likely In July As DA To Be Hiked 4%

New Delhi: The government is likely to raise the dearness allowance by another 4 per cent in July this year after a 4 per cent hike in Dearness Allowance (DA) for central government employees recently effective January 1, DA and Dearness Relief (DR) are revised twice a year — January and July. The reports also said that the DA hike is likely to be based on a revised formula for calculation, News 18 reported.

Dearness allowance is given to government employees, while the dearness relief is for pensioners.

The labour ministry revised the DA calculation formula and changed the base year of dearness allowance in 2016 and released a new series of Wage Rate Index (WRI-Wage Rate Index). The ministry said the new series of WRI with base year 2016=100 replaced the old series of the base year 1963-65.

The 4 per cent hike in DA and dearness relief (DR) will increase the salary of 47.58 lakh central government employees and pension amount for 69.76 lakh pensioners. The DA is given to employees based on the basic pay of the employees.

For example, if a government employee’s monthly take-home salary is about Rs 42,000 and the Basic Pay is around Rs 25,500; then he/ she must be getting Rs 9,690 as the dearness allowance. This DA amount will increase to Rs 10,710 after the latest 4 per cent DA hike. So, there will be an increase of Rs 1,020 in monthly take-home salary in this case, the report added.