Central Government announces 3% hike in DA for government employees

On Wednesday, the Central Government decided to increase the Dearness Allowance (DA) by 3% for government employees. With this 3% hike, the DA for central government employees has been increased from its previous 31% to 34% now. The decision was taken at a Cabinet Meeting of the Union government. 

The increase in the Dearness Allowance will provide relief to central government employees at a time when fuel prices are witnessing a surge along with increasing inflation.

Central Govt's official statement on DA hike 

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.

The last time the government raised the Dearness Allowance was in October 2021, when it was increased from 28% to 31%. Prior to that, in July 2021, the Centre raised the DA from 17% to 28%.

The Dearness Allowance is granted to central government employees to help them cope with the effects of inflation on their pay. Employees and pensioners alike can benefit from it. This decision by the government will benefit over 50 lakh central government employees and 65 lakh pensioners.