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DA News Today | 7th Pay Commission: DA for central govt employees hiked by 3% to 34%

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The central government has announced a hike in dearness allowance (DA) for central government employees. As per the announcement, the DA has been hiked by 3% to 34% from 31% earlier. The hike announced will be effective from January 1, 2022.

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

As per the press release issued today, “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% over the existing rate of 31% of the Basic Pay/Pension, to compensate for price rise.”

The release further stated 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.

Since the decision will be effective from January 1, 2022, central staff and pensioners will be getting arrears for three months.

It is important to note that government froze the hike in DA/DR from January 1, 2020 to June 30, 2021 due to novel coronavirus pandemic. However, the government has restored the DA/DR from July 1, 2021, but at hike of 28% from 17% previously. As per the order issued by Department of Expenditure, the increase in DA from 17% to 28% subsumes additional instalments arising on January 1, 2020, July 1, 2020 and January 1, 2021. The rate of dearness allowance for the period from January 1, 2020 to June 30, 2021 will remain at 17%.

In a Diwali gift to central government employees, in October 2021, the government hiked the DA by 3% over the existing rate of 28% of the basic pay and pension. This made the DA/DR to 31%. The hike was effective from July 1, 2021.

As per the press release issued on October 21, 2021, “The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 representing an increase of 3% over the existing rate of 28% of the Basic Pay / Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.”

Dearness allowance is usually received by government employees to compensate for 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 the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year on January 1 and July 1.



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