Dearness Allowance hiked by 3% for central govt employees, pensioners

The government has hiked the dearness allowance (DA) and dearness relief (DR) for the central government workers and pensioners.

The decision is taken by the Union Cabinet chaired by Prime Minister Narendra Modi, which has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.

The hike represents an increase of 3 percent over the existing rate of 31% of the basic pay or pension, to compensate for the price rise.

The new rates are effective from January 1, 2022.

“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” said the cabinet

According to the cabinet, the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.