By | 31/03/2022
Central Government Employees DA hiked

Central Government Employees DA hiked by 3 to 34 Percent- Central Govt has announced a hike in dearness allowance (DA) for Central Govt Employees. As per the report, DA has been hiked by 3% to 34% from 31% earlier. This hike issued will be effective from 01 January 2022. 

The hike in DA will not only benefit central government employees but will also benefit central government pensioners and family pensioners getting pensions from the central government. They will get this hike in the form of Dearness Relief (DR).

The Central Government has approved the release of an additional installment of Dearness Allowance (DA) to employees and Dearness Relief (DR) to pensioners. This decision was taken by the Union Cabinet chaired by Prime Minister Shri Narendra Modi, according to the press release issued today. This Dearness Allowance will be applicable from 01.01.2022 representing an increase of 3% over the existing rate of 31% of Basic Pay/Pension. so as to compensate for the increase in price.

7th Pay Commission: DA for Central Govt Employees hiked by 3% to 34% 

The release issued in the Union Cabinet meeting further said that 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. Central employees and pensioners will get arrears of three months as this decision will be effective from January 1, 2022.

The central government stopped the increase in DA/DR from January 1, 2020, to June 30, 2021, due to the coronavirus pandemic. However, the government has restored the DA/DR with effect from July 1, 2021, at an increase of 28% from the earlier 17%. According to the order issued by the Department of Expenditure, DA has been increased from 17% to 28% in additional installments due on January 1, 2020, July 1, 2020, and January 1, 2021. The rate of dearness allowance for the period from 01 January 2020, to 30 June 2021, will remain at 17%.

In a Diwali gift to central government employees, in October 2021, the government increased the DA by 3% from the existing rate of 28% of basic pay and pension. With this, the DA/DR has gone up to 31 percent. The hike was effective from July 1, 2021.

7th Pay Commission: 3% DA hike for central govt employees, effective Jan 1, 2022

According to a press release dated October 21, 2021, “The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has today approved the release of an additional installment of Dearness Allowance (DR) to Central Government employees and Dearness Relief (DR) to pensioners 1.7.2021 This represents an increase of 3% from the existing rate of 28% of Basic Pay/Pension to compensate for the price hike. 

The increase is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. Dearness The combined impact on the exchequer on account of both allowance and dearness relief will be Rs 9,488.70 crore per annum, benefiting approximately 47.14 lakh central government employees and 68.62 lakh pensioners.

Dearness allowance is usually given to government employees to compensate for the rising inflation. The decision announced today will put more money in the hands of government employees and pensioners.

Dearness Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust their cost of living and to protect their basic pay/pension from erosion in actual value. Dearness Allowance/Dearness Relief is revised twice a year on 1st January and 1st July.

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