Categories: National

Cabinet approves increase in Dearness Allowance/Dearness Relief by 3% to 34%

The Union Cabinet chaired by the Prime Minister, Narendra Modi has approved a hike in Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners by 3 per cent to 34%, over the existing rate of 31% of the Basic Pay/Pension. The hike announced will be effective from January 1, 2022, to compensate for the price rise.

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The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 9,544.50 crore per annum. This increase is in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission. The hike will benefit about 47.68 lakh Central Government employees and 68.62 lakh, pensioners.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.