With inflation in the country at high levels, government employees are expected to benefit from an increase in the High Cost Allowance (DA), which will be announced at the end of this month. According to the media, as the All India Consumer Price Index (AICPI) is hovering above 127 points, the rise in AD is expected to be around 5%. The DA is revised twice a year — January and July.
In January, the AD for central government employees under the 7th Wages Board was revised upwards to 34% from 31% previously. It is revised on the basis of the AICPI. Retail inflation, based on the CPI, was 7.79% in April, its highest level in eight years.
Prior to this, the Center had in July 2021 increased AD and High Cost Relief (DR) for central government employees and retirees, respectively, to 28% from 17% after a long pause. The dearness allowance (DA) is granted to state employees, while the dearness allowance (DR) is intended for retirees.
In October 2021, central government employees again got a 3% jump in the dearness allowance. Then, DA for central government employees increased to 31%, effective July 2021. Now, from January 2022, DA and DR will be paid to employees at a rate of 34%, increasing compared to the previous rate of 31%. percent.
Consumer price index for all India
The AICPI in January held steady at 125.1 points, which fell to 125 in February. However, in March the index jumped one point to 126 points. The AICPI in April jumped to 127.7 points. May and June data will now be closely watched. If the figures for these months remain above 127, the DA could be increased by 5%, according to the media.
DR march for CPF beneficiaries
Last month, high cost relief for certain categories of government employees was increased from 368% to 381% of the basic ex gratia allowance. These are the surviving CPF beneficiaries who retired between November 18, 1960 and December 31, 1985, according to a memo from the Ministry of Personnel, Public Grievances and Pensions.
“Surviving beneficiaries of the CPF who retired between 18.11.1960 and 31.12.1985, and are entitled to basic ex-gratia @ Rs 3,000, Rs 1,000, Rs 750 and Rs 650 for groups A , B, C & D , respectively, on June 4, 2013, see OM No. 1/10/201 2-P&PW(E) dtd On June 27, 2013, will now be entitled to increased high cost relief of 368% of base ex-gratia at 381% of base ex-gratia wef 01.01.2022,” according to the office memorandum dated May 11.
The central government had withheld three installments of high cost allowance and high cost relief for January 1, 2020; July 1, 2020; and January 1, 2021, given the unprecedented situation caused by the COVID-19 pandemic. According to reports a few days ago, the central government has made it clear that the arrears of general high cost allowances withheld from January 2020 to June 2021 will not be released from now on.
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