Dearness Allowance for govt employees increased by 3%

The Union Cabinet has decided to increase Dearness Allowance for government employees by 3 per cent. This increase in DA will be with effect 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 is based on the recommendations of the 7th Central Pay Commission.  

"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," the statement added. 

Dearness Allowance is a component of salary of government employees and pensioners, aimed at soothing the impact of inflation.

In July 2021, the Centre raised the Dearness Allowance and Dearness Relief for central government employees to 28 per cent from 17 per cent after a long period. In October last year, the central government employees witnessed a jump of 3 per cent in Dearness Allowance.

To cope up with the rising inflation, the Centre decided on another 3 per cent hike in DA and DR for the central government employees and pensioners. With this, the dearness allowance will jump to 34 per cent of the basic salary. 

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