Before Diwali, the Modi government gave a 4 percent increase in dearness allowance to central employees. Before the assembly elections in Gujarat and Himachal, this move of the central government is being considered a masterstroke. The decision of the Union Cabinet will directly benefit about 41 lakh central employees and about 61 lakh pensioners. Know, when will the employees start getting an increased salary. Union Minister Anurag Thakur said that the decision will put a total burden of Rs 12,852 crore on the exchequer.
Giving information on Wednesday, Union Minister Anurag Thakur said that the cabinet took two important decisions, which include Navratri, Diwali, Chhath Puja, Gurupurab, and Christmas while continuing with the current festive season for the next three months. The first major announcement includes the extension of free ration to 80 million poor with an outlay of Rs 44,762 crore. While the other is related to increasing DA.
Two officials, requesting anonymity, said the decision to increase the DA has been taken because of rising prices of essential commodities, especially during the festive season. Inflation, as measured by the Consumer Price Index (CPI), rose to 7% on August 22 from 6.71% on July 22, mainly due to an increase in food and fuel prices. Inflation remains above RBI's limit of 6%. In such a situation, increasing the DA is a decision like giving some relief to the employees.
The benefit will be available in Gujarat and Himachal!
"The hike in DA will help the ruling party in Himachal and Gujarat elections," an official said on condition of anonymity. The dates for the assembly elections in both states are expected to be announced soon.
Know, when will the salary increase
A second official said that both employees and pensioners will get the increased amount from July 1, 2022. That is, two additional months of DA will also be added to the salary in September. "The hike is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," he said.
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