Home » Current Affairs » DA Hike News 2022: Dearness Allowance for central government employees hiked by 3 percent-Who will benefit?

DA Hike News 2022: Dearness Allowance for central government employees hiked by 3 percent-Who will benefit?

DA Hike News 2022: Dearness Allowance for central government employees hiked by 3 percent-Who will benefit?

DA hike for central government employees: The Union Cabinet on March 30, 2021 approved a 3 per cent hike in Dearness Allowance for Central Government employees and Dearness Relief to pensioners.

Dearness Allowance for Central Government employees will be increased to 34 per cent of the basic pay from the existing 31 per cent.

The DA hike will be applicable from January 1, 2022. The DA hike has been approved based on the recommendations of the 7th Central Pay Commission.

DA Enhancement effect

The combined effect of hike in dearness allowance for central government employees and dearness relief to pensioners would be Rs 9,544.50 crore annually.

Who will benefit from the hike in dearness allowance?

About 47.68 lakh central government employees and 68.62 lakh pensioners will benefit from the increase in dearness allowance.

What is Dearness Allowance?

Dearness Allowance is the living adjustment allowance that the government gives to its employees.

How is Dearness Allowance calculated?

Dearness Allowance is calculated by multiplying the current rate of Dearness Allowance with your basic pay.

for example: If the existing DA rate is 12% and if your basic salary is Rs. 49000. Then DA will be 49000×12/100.

What is Dearness Relief?

Dearness Relief is similar to DA and is given to Central Government pensioners. It is a part of the pension received by the pensioner.

Who are eligible for DA?

Only public sector employees are eligible for Dearness Allowance and Dearness Relief.

What is DA for government employees?

The current DA rate for central government employees has been increased by 3 per cent to 34 per cent. It will be effective from 1 January 2022.

Dearness Allowance: Background

The central government had increased the DA of basic pay and pension from 28 per cent to 31 per cent in October 2021 as a Diwali gift to central government employees. This was the second hike in DA after a gap of one year in July 2021 after the DA rates were increased from 17 per cent to 28 per cent.

The Center had put on hold three additional installments of dearness allowance and dearness relief payable on January 1, 2020, July 1, 2020 and January 1, 2021.

 

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