Rate of Dearness Allowance payable to Central Government employees, shall be enhanced from 34% to 38% of the Basic Pay with effect from 1st July, 2022.

PP-08/2/2021-PAP – DOP
Government of India
Ministry of Communications
Department of Posts
[Establishment Division/P.A.P. Section]

Dak Bhawan, Sansad Marg,
New Delhi – 110 001.
Dated: 06th October 2022.

To,

1. All Chief Postmasters General
2. All Postmasters General
3. Sr. Deputy Director General (PAF), Department of Posts
4. All General Managers (Finance)
5. All Directors/ Deputy Directors of Accounts (Postal)
6. Director, RAKNPA/ Directors of All PTCs

Sub: Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 01.07.2022

Bonus for postal employees 2022

Sir/Madam,

I am directed to forward herewith a copy of the Ministry of Finance, Department of Expenditure’s Office Memorandum No. 1/3/2022-E.IL (B) dated 03.10.2022 on the subject cited above for information and further necessary action.

Dearness Allowance to Gramin Dak Sevaks (GDS) July 2022 Order

This issue with the approval of the competent authority.

Yours faithfully,
(Sapna)
Assistant Director General (Estt.)

Central Govt Employees DA Order July 2022 PDF

Subject: Revision of rates of Dearness Allowance to Central Government employees- effective from 01.07.2022.

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/2/2022 -E-II(B) dated 31.03.2022 on the subject mentioned above and to say that the President is pleased to decide that the rate of Dearness Allowance payable to Central Government employees, shall be enhanced from 34% to 38% of the Basic Pay with effect from 1st July, 2022.

Grant of Dearness Allowance to Central Government employees- Revised Rates effective from 01.07.2022 – DoP

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Cabinet approved the proposal to raise the DA for central government employees and pensioners to 38% an increase of 4% DA from July 1, 2022

The 4% increase in Dearness Allowance benefits approximately 47.68 lakh central government employees and 68.62 lakh pensioners.

The proposal to release an additional installment of DA to compensate for the increase in price was approved at the Cabinet Committee on Economic Affairs (CCEA) meeting led by Prime Minister Narendra Modi.

Since the latest dearness announcement hike’s effective date is July 1, the staff would be paid the arrears with their latest salaries, in a festive cheer for approximately 47.68 lakh central government employees and 68.62 lakh pensioners, and is also applicable for civilian employees and those employed in defence services.

The additional financial impacts of this Dearness Allowance increase for Central Government employees are expected to be 6,591.36 crore each year, and 4,394.24 crore in the fiscal year 2022-23 – from 20th July 2022 to 20th February 2023.

The additional financial implications of this increase in Dearness Relief to seniors are expected to be Rs.6,261.20 crore per annum, and Rs.4,174.12 crore in the fiscal year 2022-23 – from July, 2022 to February, 2023.

The aggregate impact on the exchequer from Dearness Allowance and Dearness Relief would be 12,852.56 crore each year, and 8,568.36 crore in the fiscal year 2022-23, that is, from July 20, 2022 to February 20, 2023.

Every year, the central government revises the dearness allowance and dearness relief, however the decision is normally made in March and September.

Previously, in March, the Cabinet approved a plan to raise the dearness allowance (DA) for central government employees and dearness relief (DR) for retirees by 3% to 34% of basic salary, up from 31% previously, beginning January 1, 2022.

The government was paying employees three months in arrears at the time.

Every year, the central government revises the dearness allowance and dearness relief, however the decision is normally made in March and September.

Any modifications to the dearness allowance are made in accordance with the approved formula, which is based on the 7th Central Pay Commission’s recommendations to compensate for price increases.

From July 1, the grant of dearness relief (DR) to central government pensioners and family pensioners will be available at the same updated rate as it is for employees. Pension disbursing agencies, including nationalised banks, will determine the amount of DR payable to each pensioner on an individual basis.

The revised rates would apply to central government pensions, civilian central government pensioners/family pensioners, armed forces pensioners, civilian pensioners paid out of defence duty, all India service pensioners, railway pensioners/family pensioners, and provisional pensioners.

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