The DA and DR increases were announced today (March 30) by the Centre to assist central government employees and retirees in dealing with rising inflation.
Digital Desk: The Union Cabinet has approved a three percent Dearness Allowance (DA) increase for all central government employees and pensioners, effective from April 1, 2022. With this, the dearness allowance for central government employees will rise to 34% of their basic salary. The DA and DR increases were announced today (March 30) by the Centre to assist central government employees and retirees in dealing with rising inflation. “The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2022 representing an increase of 3% over the existing rate of 31% of the Basic Pay/Pension, to compensate for price rise,” a statement released by the government read. This rise is per the accepted formula based on the 7th Central Pay Commission’s recommendations. The total yearly 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 increase. Due to the coronavirus pandemic, the revision of the dearness allowance had been delayed for over a year and a half. After a long delay, the Centre increased the dearness allowance and dearness relief for central government employees to 28 percent from 17 percent in July 2021. Then, in October 2021, central government employees were accepted to a three percent rise in the DA. The latest increase brings the DA for central government employees to 34 percent. Concurrently, the dearness relief for central government pensioners increased to 31%.
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