New Delhi: Dearness allowance (DA) for central government employees and pensioners has been increased by 3 per cent to 34 per cent of the basic pay from 31 per cent previously, effective January 1, 2022.
DA increased is based on the accepted formula on the recommendations of the 7th central pay commission.
The Union Cabinet chaired by Prime Minister 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.
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A statement by the cabinet said that an increase of 3 per cent over the existing rate of 31 pensions of the Basic Pay/Pension has been approved, to compensate for the 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.
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The cabinet stated that this will benefit about 47.68 lakh Central Government employees and 68.62 lakh, pensioners.