Cabinet approves increase in Dearness Allowance/Dearness Relief by 3% to 34% from January 01, 2022

• The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has approved a hike in Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners by 3 percent to 34%, over the existing rate of 31% of the Basic Pay/Pension.
• The hike announced will be effective from January 1, 2022, to compensate for price rise.
• 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 increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.
• The hike will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.

Points to Remember:

1. What is the overall rate of DA/DR approved by Union Cabinet for Central Govt employees and pensioners w.e.f January 01, 2022?

Source: Economic Times