Central employees have received the gift of Diwali as the government has announced to give 17% dearness allowance (DA) to army personnel and officers. With this, there will be a significant increase in the salary of military officers. This increase will be applicable from 1 July 2019.

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As per the government, the orders have been issued to all departments to give the increased DA to employees. Some states will be starting giving salaries at their level soon, including DA arrears, bonus amount and salary.

In Bihar and UP, preparations were made to give salaries to employees before Diwali. The UP government has also decided to give a bonus of Rs 7,000 to non-gazetted group C and group D employees.

This time the DA of central employees has increased by 5%, which is the highest in 3 years. The reason for this is the rise in inflation in AICPI during January to June 2019. Inflation in the AICPI figures for January to June has jumped over 5%. This will increase the salary of each employee from Rs 900 to Rs 12,500 per month.

This is how DA is calculated

> June 2019: AICPI-316
> Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) * 100 / 261.4)
> Increase in DR: 17% -12% = 5%