Saturday, September 6, 2025
spot_img

Government is likely to raise 3% Dearness Allowance for employees

spot_img
- Advertisement -

Under the 7th Pay Commission, Government is likely to raise the dearness allowance (DA) once again for Central government employees at the start of 2022.

The 3% hike could lead to an increase in salary of up to Rs 20,000 for government employees.

Currently, DA is being paid at the rate of 31% to all the central government employees and pensioners. But, there is a possibility of increasing 3% DA in January 2022.  

In July 2021, the government had hiked the DA by 11 per cent to 28 per cent. It was earlier paid at the rate of 17 per cent. And in October, the DA was hiked to 31 per cent.

Dearness allowance is given to government employees in order to offset the rising costs of living and to allow government employees to maintain their living standards.

Generally, the DA rate is hiked twice a year between January and July, in order to adjust for inflation in the economy.

With the cost of consumer prices at one of the highest rates of inflation in recent years, it is to be expected that the government increases the DA accordingly as well.

Apart from an increase in the DA, the central government is also reportedly considering an increase in the fitment factor. The fitment factor determines the basic pay for all central government employees.

The fitment factor was hiked last in 2016, which saw the minimum basic pay of employees increase from Rs 6,000 to Rs 18,000. The likely increase to the fitment factor is going to bring the minimum basic salary to Rs 26,000, state reports.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Somany Ceramics appoints Atish Bhattacharya as AVP- HR

An internationally acclaimed organization that specializes in ceramics and...

Infosys to hire an additional 500 tech employees in Rhode

Infosys plans to hire additional 500 tech employees in...

Digital HR: Benefits And The Road To Talent Retention

It is said,“Stellar talent has led to stellar success”....

Dozee Healthtech Startup Restructures; 20% Workforce Laid Off

Bengaluru-based healthtech startup Dozee has recently implemented a significant...

Cleartrip has laid off 400-500 employees

Cleartrip has laid off 400-500 employees. the company's spokesperson said the Covid-19...

Ola, Uber drivers go on strike in Delhi-NCR asking fare hike

Ola, Uber drivers go on strike in Delhi-NCR asking...

Infosys Leads in Wage Hikes, TCS Prioritizes Retention

India’s top IT services firms—Tata Consultancy Services (TCS), Infosys,...

Ed-tech firm Vedantu to hire 2,500 people in next 3 months

Ed-tech firm Vedantu to hire 2,500 people in next...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/