Expected Dearness Allowance (DA) for Central Government Employees from January 2022

The Dearness Allowance (DA) of central government employees is paid under the provisions of the 7th Pay Commission. The DA is paid to compensate the employees against the effect of inflation and is revised twice a year i.e. in January and July. The revision is based upon the All India Consumer Price Index (AICPI) released by Labour Bureau on monthly basis. Previous twelve months' data is used to decide the DA payable to central government employees.


The existing DA for the period from July 2021 to December 2021 is 31%. The CPI(IW) has been released up to November 2021. The CPI(IW) for November 2021 is 125.70 and if it remains at the same level during December 2021 there shall be an increase of 3% in dearness allowance. The expected dearness allowance for the period from January 2022 to June 2022 is 34%.

The Consumer Price Index data for the payment of DA from January 2022 is as under

Month

CPI (IW) 2016=100

February 2021

118.20

March 2021

119.00

April 2021

119.60

May 2021

120.10

June 2021

121.70

July 2021

122.80

August 2021

123.00

September 2021

123.30

October 2021

124.90

November 2021

125.70

December 2021

 

 

The historical Increase in dearness allowance of central government employees is as under

Period

Dearness Allowance (%)

July 2021 to December 2021

31%

January 2022 to June 2022

34% (Expected)

July 2022 to December 2022

Yet to be declared

 

The Link to DA notifications is given under “Sources”.

Disclaimer: The estimated increase in DA as calculated above is based on the latest CPI(IW) data. The actual amount payable shall be governed by official notification in this respect.


Sources

http://www.labourbureau.gov.in/LBO_Press_Release.htm

https://doe.gov.in/sites/default/files/DA%20Order%20Eng.pdf (July 2021)

https://doe.gov.in/sites/default/files/DA%20eng.pdf (July 2021)


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