7th pay commission: DA for central govt employees hiked by 3% to 34%

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.”

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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.