Dearness allowance increased by 3% for Central govt employees

To deal with growing inflation, the Centre agreed to increase DA and DR for central government employees and pensioners by additional 3%. As a result, the dearness allowance will increase to 34% of the base pay.

Dearness allowance increased by 3 per cent for Central govt employees effective from January 2022 gcw

The Union Cabinet has decided to increase government employees' Dearness Allowance by 3%. This DA hike will take effect on January 1, 2022.

"The Union Cabinet, chaired by 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 with effect from January 1, 2022, representing a 3% increase over the existing rate of 31% of Basic Pay/Pension, to compensate for price rise," the government said in a statement.

Employees will be relieved by the DA boost, which comes at a time when gas and diesel prices are on the rise. To deal with growing inflation, the Centre agreed to increase DA and DR for central government employees and pensioners by additional 3%. As a result, the dearness allowance will increase to 34% of the base pay.

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The rise is based on the 7th Central Pay Commission's recommendations. Dearness Allowance is a component of government employees' and retirees' salaries that is intended to mitigate the effects of inflation.

After a lengthy period, the Centre increased the Dearness Allowance and Dearness Relief for central government employees to 28% in July 2021, up from 17%. In October of last year, central government employees saw a 3% increase in Dearness Allowance.

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