DA for central government employees hiked to 34%, effective from January 1, 2022
The cabinet has approved the proposal to increase the dearness allowance for central government employees and pensioners by 3 per cent to 31 per cent of the basic pay from 31 per cent previously, effective January 1, 2022.
The Union Cabinet chaired by the Prime Minister, 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 effective January 1 this year, 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.
That increase is per the accepted formula, which is based on the recommendations of the 7th central pay commission.
The notification said that the term “basic pay” means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay.
The combined impact on the exchequer on account of both the dearness allowance and the 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.
