The Union cabinet has cleared the proposal to increase dearness allowance (DA) for Central government employees and pensioners by 3 per cent to 34 per cent of the basic pay from 31 per cent previously, to be effective from January 1, 2022.
Chaired by Prime Minister Narendra Modi, the cabinet approved release of additional instalments of DA to Central government employees and dearness relief (DR) to pensioners, effective from January 1 this year.
The increase is as per the accepted formula, based on recommendations of the 7th Pay Commission. This would cost the government Rs 9,544.50 crore annually, and benefit 47.68 lakh Central government employees and 68.62 lakh pensioners.
