3 Percent Rise In DA
Great news for central government employees & pensioners, as The Central Government confirms to increase dearness allowance (DA) by 3 per cent. As per the announcement, the DA is increased up to 34 per cent from 31 per cent earlier. This hike will be effective from January 1, 2022.
The benefit of this hike will not only apply to central government employees but also to central government pensioners and family pensioners will get the advantages. Both the categories of beneficiaries will receive this hike in the form of Dearness Relief (DR).
Decision To Increase DA
The issued press release says, “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.”
They stated that the final impact of this decision on both the accounts DA and DR results in Rs.9,544.50 annually. 47.68 lakh central government employees and 68.62 lakh total pensioners will receive this benefit. And as the hike is effective from January 1, 2022, the employees and pensioners will receive the dues for three months in one go.
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According to a press release on October 21, 2021, “The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 representing an increase of 3% over the existing rate of 28% 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.9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.”