The government on Wednesday hiked the Dearness Allowance (DA) for its employees and Dearness Relief (DR) for the pensioners by 3 per cent to 34 per cent of their basic pay and pension respectively.
A decision to this effect was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi to benefit over 1.16 crore central government employees and pensioners.
The hikes in DA and DR are effective from January 1, 2022 and are over and above existing rate of 31 per cent of the basic pay and pension to compensate for price rise, the government said in an official statement.
“This increase is in accordance with 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 DA and DR would be Rs 9,544.50 crore per annum. This will benifit about 47.68 lakh employees and 68.62 lakh pensioners,” the government said in the statement.