In a major relief for the salaried class in India, the central government on Wednesday, March 30 announced a hike in Dearness Allowance or DA for central government employees under the Seventh Pay Commission. After the latest step of the government DA will increase Dearness relief for pensioners was also hiked by the government after the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, with effect from January 1, 2022, by 3 per cent, with effect from January 1, 2022. The move will benefit around 47.68 lakh central government employees and 68.62 lakh pensioners amid rising fuel prices, oil prices and inflation in general.
“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the release of an additional installment of dearness allowance (DA) to the Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 representing an increase of 3 per cent over the existing rate of 31 per cent of basic pay/pension, to compensate for the increase in value,” the Cabinet mentioned. .
“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 9,544.50 crore per annum. This will benefit about 47.68 lakhs. central government employees and 68.62 lakh pensioners,” it further said.
The DA and DR hike was stalled for more than a year and a half due to the Covid-19 pandemic as the government said it was using the funds to upgrade healthcare infrastructure. The latest announcement comes at a time when retail inflation touched an eight-month high of 6.07 per cent in February.
In July last year, the Center announced an 11 per cent hike in dearness allowance and dearness relief for central government employees and pensioners, after which it increased from 17 per cent to 28 per cent. Later that year in October, the government again increased the DA and DR to 3 per cent, after which the DA for central government employees increased to 31 per cent. It came into effect from July 2021. Similarly, dearness relief for central government pensioners was also increased at the rate of 31 per cent from the same time.
Increase in DA under 7th Pay Commission: How much will be the salary?
The cabinet said that this increase is as per the approved formula, which is based on the recommendations of the 7th Central Pay Commission.
After the latest hike, central government employees will get 34 per cent dearness allowance calculated by multiplying the current rate of DA by the basic pay of the employee. If this is calculated, the latest DA hike will result in an increase in gross salary by up to Rs 20,000. Dearness Allowance or DA is the living adjustment allowance that the government pays to offset the effects of inflation. It is paid to both public sector employees and pensioners.
read all breaking news , today’s fresh news And IPL 2022 Live Updates Here.