On Wednesday, the Central Government has announced to increase the Dearness Allowance (DA) by 3 percent for employees working with the central government. This allowance has been increased from 31 percent to 34 percent. The move has been taken to benefit more than 50 lakh government employees and 65 lakh pensioners. This increase in dearness allowance will be applicable from January 1.
The Dearness Allowance for the central government employees and pensioners has been increased as per the formula based on the recommendations of the 7th Central Pay Commission (7th Pay Commission). The combined impact on the exchequer on account of both dearness allowance and dearness relief would be around ₹9,544 crores per annum, the government said in a statement. In the midst of rising prices of petrol and diesel and rising inflation, the increase in dearness allowance has brought a big relief to the central government employees.
The Cabinet's Statement
In a statement, the Cabinet chaired by PM Narendra Modi said, "The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional installment 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 percent over the existing rate of 31 percent of the Basic Pay/Pension, to compensate for the 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 will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners."