Dearness Allowance For Govt Employees Hiked By 3%

New Delhi:  The Union Cabinet on Wednesday hiked the Dearness Allowance (DA) of central government employees and the Dearness Relief (DR) of pensioners by 3 per cent over the existing rate of 31 per cent of the basic pay/pension to compensate for the rising fuel price and increasing inflation.

It will be effective from January 1, 2022.

“The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 representing an increase of 3 per cent over the existing rate of 31 per cent of the Basic Pay/Pension, to compensate for price rise,” said a statement by the government.

The increase in DA is in accordance with the accepted formula based on the recommendations of the 7th central pay commission and is likely to benefit about 47.68 lakh central government employees and 68.62 lakh pensioners.

“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,544.50 crore per annum,” the statement added.

The increase in DA was stalled due to the COVID pandemic and was hiked to 28 per cent from 17 per cent after a long period, effective July 1, 2021. In October last year, the central government employees witnessed a jump of 3 per cent in Dearness Allowance.