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Amid rising inflation, the central government is preparing to fill the coffers of its employees and pensioners. If you or someone in your family is a central employee, this news will bring a smile on your face. According to the latest updates, the government is soon going to increase the Dearness Allowance (DA) by a huge 3%. There is full hope that this decision will be approved in the upcoming cabinet meeting. Your DA will increase from 50% to 53%. Currently, central employees are getting 50% dearness allowance under the 7th Pay Commission. If the government gives the green signal to this new 3% hike, the total DA will jump to 53%. This will have a direct and positive impact on the ‘in-hand salary’ of the employees. How much will be the direct increase in salary? Understand the complete mathematics. How much difference will there be in the salary due to increase in DA, it can be understood with an easy example: Suppose, the basic salary of an employee is ₹ 30,000 per month. Increasing DA by 3% directly means that there will be an additional increase of about ₹ 900 in his salary every month. If seen on an annual basis, then an additional amount of more than ₹ 10,800 will come to the bank account of that employee. Those whose basic salary is higher, their profit will also be higher in the same proportion. Pensioners will also get bumper benefit of ‘Dearness Relief’ (DR). The best thing about this decision is that its benefit will not be limited to serving employees only. Along with the increase in DA, the Dearness Relief (DR) of retired employees will also increase by 3%. This will also see a significant increase in the monthly pension of lakhs of pensioners across the country. AICPI index data confirmed the increase. The government does not increase DA out of thin air, rather its decision is taken on the basis of All India Consumer Price Index (AICPI) data. The inflation figures that have come out in the last few months have completely cleared the way for a 3% DA increase. The government revises the allowances twice a year (January and July) and now the official announcement is awaited.