The government has hiked Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners by three per cent. The Union Cabinet chaired by the Prime Minister Narendra Modi, has given its approval to release an additional instalment of DA and DR.

The new rates are effective from January 1, 2022.

DA, DR HIKE

The hike represents an increase of 3 per cent from the existing rate of 31 per cent of the Basic Pay or 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.