Dearness Allowance (DA) increased by 3% for Central Govt employees; Effective from 1 Jan 2022

New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi today gave 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.

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