Dearness Allowance for Central government employees, pensioners hiked by 3 per cent

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Dearness Allowance (DA) of the central government employees and Dearness Relief (DR) to pensioners have been increased by 3 per cent to 34 per cent of the basic pay with effect from January 1, 2022, the Union Finance Ministry said on Wednesday.

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 w.e.f. 01.01.2022 represents an increase of 3 per cent over the existing rate of 31 per cent of the Basic Pay/Pension, to compensate for the price rise, the Finance Ministry said in a statement.

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

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.

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