Good news for central government employees, DA up 4%

New Delhi: The Union Cabinet on Wednesday increased the dearness allowance (DA) of central government employees by 4 per cent, effectively taking it to 38 per cent from 34 per cent.

The decision was taken at today’s Union Cabinet meeting, according to reports.

The Central Government reviews the Dearness Allowance and Dearness Relief on 1 January and 1 July each year, but this decision is usually announced in March and September.

The Union Cabinet in March approved a 3 percent hike in Dearness Allowance (DA) under the 7th Pay Commission, taking DA to 34 percent of basic income.

“The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for grant of additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2022. , which represents an increase of 3% over the existing rate of 31% of basic pay/pension to compensate for the rise in prices,” the Prime Minister’s Office said in a statement.

The hike in DA will lead to a pay hike for approximately 52 lakh central government employees and 65 lakh pensioners.

Dearness Allowance (DA) is given to government employees while Dearness Relief (DR) is for pensioners.

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