Central government DA hiked by 3% on inflation
Pensioners to benefit too; effective 1 Jan’22
CPI (Consumer), India's inflation journey so far; source - World Bank
The Union Cabinet chaired by the Prime Minister, Narendra Modi, has approved the release additional Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners effective 1 Jan 2022 to compensate for the rise in inflation. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners, according to government data.
The total DA will now stand at 34%, up 3% over the earlier rate of 31% of the basic pay/pension. This increase is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer is likely to be Rs.9,544.50 crore per annum, government sources indicated.
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