On 30th March, the Union Cabinet has approved the release of an additional installment of Dearness Allowance to central government employees and Dearness Relief to pensioners, with an increase of 3% over the existing rate of 31% of the Basic Pay, to compensate for the price rise which will be effective from 1st April 2022. Now the Dearness Allowance of all the central government employees will rise to 34% of the basic salary.
The Union Cabinet and Prime Minister Narendra Modi have approved to relase an additional installment of Dearness Allowance for the Central Govt. Employees and Dearness Relief for Pensioners effective from January 2022. The 7th Pay Commission has announced the 3% hike in DA, DR for the central govt employees to cope up them with the inflation.
Earlier the Modi Govt has hiked DA from 17% to 28% with the restoration of 3 pending installments due to coronavirus. After the 3 percent DA hike in July, the Dearness Allowance of govt employees and pensioners was 31 percent from September 2021.
The Union Cabinet states” 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.”
It is important to note that the government froze the hike in DA/DR from January 1, 2020, to June 30, 2021, due to a novel coronavirus pandemic
We have tabulated the details of the DA hike according to the new hikes that benefited the central government employees. The commission has increased the DA in salary by 3 percent means Rs.540.
|July 2021||28% increased to 31%||Rs 5,580|
|March 2022||31% increased to 34%||Rs 6,120|
What is Dearness Allowance?
The Dearness Allowance is a computation of affectation and allowance paid to government workers and pensioners in India, Bangladesh, and Pakistan. Dearness Allowance is calculated as a chance of an Indian citizen’s introductory payment to alleviate the impact of affectation on people.
What is Dearness Relief?
Dearness Relief means a relief granted to pensioners including family pensioners due to inflation in prices and shall be granted at such rates and subject to such conditions, as the State Government may specify.
Who will be benefitted from the Central Govt Employees?
The central government employees and the pensioners including family pensioners will get benefitted from the 3 percent hike in the DA and DR. There are 58 Union ministries and 93 departments in India which fall under Central Government. The government jobs will be:
- Indian Revenue Service.
- Department of Disinvestment.
- Department of Economic Affairs.
- Department of Revenue.
- Central Board of Excise and Customs.
- Central Economic Intelligence Bureau.
- Directorate General of Central Excise Intelligence.
- Directorate General of Economic Enforcement