New Delhi: Good news, workers employed by the Chandigarh administration will now receive an increased dearness allowance (DA). Chandigarh administration employees will now receive DA at 34% of their base salary, down from 31% previously. The hike was implemented retrospectively from January 2022, meaning eligible employees are likely to receive arrears for months from January to April 2022 with their next paycheck. The announcement of the AD hike comes after the central government increased the cost allowance for its employees by 3%, from 31% to 34%, in March 2022.
“The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the payment of an additional tranche of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to retirees from from January 1, 2022, representing a 3% increase above the current 31% base salary/pension rate, to offset price increases,” the Prime Minister’s Office had said in a statement.
The recent increases in the DA for state employees come after a freeze on benefit increases due to the Covid-19 pandemic. Since the government lifted the AD hikes in July 2021, the dearness allowance and dearness reliefs have been revised three times. Both allowances have nearly doubled in recent months.
For the uninitiated, due to the extraordinary financial stress created by the COVID-19 pandemic, the central government had reserved three DA and DR increases for January 1, 2020, July 1, 2020 and January 1, 2021. Read also : PAN card scams on the rise: here’s how to stay safe
In a written response to a question posed to the Rajya Sabha in August 2021, Finance Minister Nirmala Sitharaman disclosed that the withholding of DA and DR saved around Rs 34,402 crore. Also read: LIC IPO: Government treasure chest grows richer by Rs 20,557 crore after diluting 3.5% stake with mega-bid