3 per cent DA hike for Central govt staff from Jan 1, 2022

The Union Cabinet on Wednesday hiked Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent to 34 per cent to compensate for the price rise, benefitting over 1.16 crore central government employees and pensioners.

The additional instalment will be effective from January 1, 2022, said an official release after the Cabinet meeting.

“The Union Cabinet…has given its approval to release an additional instalment of DA to Central government employees and DR to pensioners w.e.f. January 1, 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,” an official statement said.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, it added. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 9,544.50 crore per annum. This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners, the release said.

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