DA of central government employees increased by 3%: Sources
Highlight
- Dearness Allowance (DA) and Dearness Relief (DR) is now 34%
- The latest hike will be effective from January 1, 2022
- While DA is a component of salary, pensioners are given DR
Sources told India TV on Wednesday that the Modi government has increased Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent (from 31 per cent to 34 per cent) for its employees and pensioners. With the latest increase which will be effective from January 2022, DA and DR now stands at 34 per cent.
About 47.68 lakh central government employees and 68.62 lakh pensioners will benefit from this hike.
The additional installment will be effective from January 1, 2022, said an official release after the Union Cabinet meeting, which was chaired by Prime Minister Narendra Modi.
“The hike is as per the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” it said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,544.50 crore per annum.
The hike comes at a time when oil companies have increased the prices of petrol and diesel by more than Rs 5 per liter in the last nine days. Amidst skyrocketing fuel prices and inflation, the hike in dearness allowance will bring great relief to central employees and pensioners.
DA is a component of salaries of employees specifically aimed at relieving them from the effects of inflation. DR is given to pensioners.