Big Announcement! DA Hiked by 3% for Central Government Employees

To compensate for price increases, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, effective January 1, 2022, representing a 3 percent increase over the existing rate of 31 percent of Basic Pay/Pension.

This increase is in accordance with the accepted formula, which is based on the 7th Central Pay Commission’s recommendations.

The combined annual impact of Dearness Allowance and Dearness Relief on the exchequer would be Rs.9,544.50 crore. About 47.68 lakh Central Government employees and 68.62 lakh pensioners will benefit from this.