3% additional instalment of Dearness Allowance to Central Government employees
Dearness Allowance Hiked By 3%, the existing rate of DA 31% to 34% to all Central Govt Employees, Pensioners
Dearness Allowance January 2022 The Total Dearness Allowance is now 34% [3% + 31% = 34%]
Press Information Bureau Government of India Ministry of Finance
Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2022
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.
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.9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.
The present DA calculation formula which was recommended by the 7th pay commission! The key factor of the new AICPIN series [CPI(IW 2016=100)] is being used for the calculation of the Dearness Allowance for Central Government employees and pensioners from September 2020.