DA, DR increased by 3% for Central govt staff, pensioners
New Delhi, March 30: In a major relief to Central government employees, the Union Government on Wednesday announced an increase in Dearness Allowance (DA) and Dearness Relief under the 7th Pay Commission recommendations.
The DA has been hiked by 3 per cent with effective from January 1, 2022. The Dearness Relief for pensioners has also been hiked by the government after a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
The move is set to benefit around 50 lakh Central government employees and 65 lakh pensioners amid rising fuel prices, oil prices and inflation in general.
“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," the Cabinet mentioned.
How much salary to increase?
The increase is based on the recommendations of the Seventh Central Pay Commission recommendations. Also read | Konkan Railway completes 100 pc electrification; PM Modi congratulates team
Central government employees will get a 34 per cent Dearness Allowance calculated by multiplying the current rate of DA by the base salary of the employee. If this calculation is done, the latest DA hike will result in an increase of the gross salary by up to Rs 20,000.
What is DA?
Dearness Allowance or DA is the cost of living adjustment allowance that the government pays to offset the impact of inflation.
-PTC News
