Ahead of Diwali, dearness allowance of Uttar Pradesh govt employees hiked to 38%

According to a tweet by Chief Minister Yogi Adityanath’s office, “UP CM Yogi Adityanath has decided to increase the rate of dearness allowance and dearness relief from the present 34% to 38% with effect from 01.07.2022 keeping in mind the wider interest of the state employees and pensioners/ family pensioners”.

Recently, several other states have increased the dearness allowance of their employees. On 14 October, Chhattisgarh Chief Minister Bhupesh Baghel announced a 5% rise in dearness allowance (DA) for state government employees, bringing the total to 33%. According to the official, the raise will benefit almost 3.80 lakh state government employees.

Earlier this month, the Delhi government also hiked DA by 4% of its employees.

The Jharkhand cabinet on 10 October approved a proposal to hike the dearness allowance (DA) for state government employees and the dearness relief (DR) for its pensioners by 4% with effect from July 1 this year.

Notably, the central government on 28 September approved a 4% additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners with effect from July 1, 2022.

This hike will take DA to 38%. Earlier, the DA was at 34% between January to June 2022.

There are about 50 lakh central government employees and over 61 lakh pensioners.

The DA is calculated as a percentage of the basic salary of government employees. In simple terms, DA means a cost-of-living adjustment that is offered to these employees. DA is paid by the government to help employees cope with stubbornly rising prices which is due to high inflation.

How to calculate Dearness Allowance on your salary

For central government employees: The DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100.

Meanwhile, for central public sector employees, the DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100.