Quick Summary
Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2022
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.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
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.
FAQ :
The Union Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.
The Dearness Allowance and Dearness Relief have been increased by 3%, bringing the total to 34% of the basic pay or pension.
The increase is effective from January 1, 2022.
This increase will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.
The combined impact on the exchequer for both Dearness Allowance and Dearness Relief is estimated to be Rs. 9,544.50 crore per annum.
The increase is in accordance with the accepted formula based on the recommendations of the 7th Central Pay Commission.
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