Dearness allowance 34% from 1.1.2022 according to DA formula

The rate Dearness allowance from 1.1.2022 will be 34% according to DA formula

As per the approved formula for DA calculation, the rate of Dearness Allowance to be paid to all central Government Employees with effect from January 2022 will be 34%.

DA arrears Calculation from January 2022 to March 2022

DA Arrears Calculator is provided by our team to calculate the DA arrears for three months from January 2022 to March 2022. After the announcement of DA enhancement , order will be issued for payment of DA from January 2022.

If finance Ministry issues order before the payment of the salary of month of March 2022, then two months arrears will be paid.

Click here to Calculate DA Arrears from January 2022

Table of Content

The DA table from January 2016 reveals that the rate of increase after the implementation of 7th CPC is very low.

DA Table from January 2016

Click the link in the Date to read the Order

Effect fromRate of DAEffect fromRate of DA
01.01.2016001.01.202117% (Freeze)+4%
01.07.20162%01.07.202131%
01.01.20174%01.01.2022 34%
01.07.20175%01.07.2022 Calculate DA
01.01.20187%01.01.2023 
01.07.20189%01.07.2023 
01.01.201912%01.01.2024 
01.07.201917%01.07.2024 
01.01.202017% (Freeze)+4%01.01.2025 
01.07.202017% (Freeze)+3%01.07.2025 

DA freeze from 1.1.2020

Dearness Allowance to be increased from 1st January 2020 with an increase of 4% was kept on hold due to the order issued by Ministry of finance to freeze the DA at existing rates with effect from 1.1.2020.

Further this order had stated as follows

As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.

DA increased to 28% from 1st July 2021

Accordingly the order was issued by Ministry of Finance on 20th July, 2021 to release the DA dues frozen from 1.1.2020. and Dearness Allowance payable to Central Government employees has been enhanced from the rate of 17% to 28% of the basic pay with effect from 1st July, 2021. The increase subsumed the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01,2021.

So all the Central Government Employees had to forgo the amount to be paid to them on account of DA increase from 1.1.2020 to 1.7.2021. Had the DA increase approved for 3 additional instalments with effect from its due dates, the Govt Staff would have got considerable amount as arrears . See how much DA arrears lost. And also calculate the DR Arrears

DA increased to 31% from July 2021

After that the DA increase due from 1.7.2021 was also ordered to be released. Hence the DA has been enhanced to 31% from 28% with effect from 1.7.2021.

Finance Ministry Issued order on 25.10.2021 for enhancing DA from 1st July 2021 and as a result of that all central government employees got three months arrears of increased rate of Dearness Allowance from July 2021.

At present the Central government employees are being paid 31% of their basic pay as Dearness Allowance.

What is rate of DA from January 2022 ?

Now the AICPIN for December 2021 also was released by Labour bureau on 31.1.2022. So the average AICPIN required for calculation of the Rate of DA from January 2022 is available with us. When this AICPIN average applied in the prescribed formula to calculate the rate of DA from 1st January 2022, the result shows that 34% DA has to be paid to all central government employees with effect from 1.1.2022.

See the month wise increase in DA with AICPIN

S.NoMonth & YearAICPIN PointsDifference In AICPINDA  Increase @ Monthly
1January 2021118.228.50
2February 2021119.0(+0.8)28.97
3March 2021119.6(+0.6)29.56
4April 2021120.1(+0.5)30.10
5May 2021120.6(+0.5)30.65
6June 2021121.7(+1.1)31.24
7July 2021122.8(+1.1)31.80
8August 2021123.0(+0.2)32.32
9September 2021123.3(+0.3))32.80
10October 2021124.9(+1.6)33.30
11November 2021125.7(+0.8)33.85
12December 2021125.4(-0.3)34.46

Cabinet Approval for DA from January 2022

It is expected that formal approval for this DA increase from January 2022 shall be given by Union Cabinet in the first week of March 2022. Calculate the DA from July 2022

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