For central government employees and retirees, the Centre has approved a 4% increase in the dearness allowance (DA).
Anurag Thakur, the Union Minister, announced the findings of the Cabinet Committee on Economic Affairs by saying that central government employees and retirees will henceforth receive a dearness allowance of 38% of their basic pay or pension to offset rising expenses (CCEA). He added that Rs 12, 852 crores has been allotted by the government.
While announcing the decision, Thakur said, “Cabinet approves release of additional instalment of Dearness Allowance and Dearness Relief at 4% to Central Government employees and pensioners, due from 01.07.2022.”
In accordance with the 7th pay commission, the dearness allowance was last increased in March with effect from January 1, 2022. With this increase, the dearness allowance increased 3% over the prior March increase of 31%.
The seventh Central Pay Commission’s recommendations served as the foundation for this dearness allowance increase. In order to help its employees cope with the inflation-like condition, the central government offers them a dearness allowance.
Inflation and price changes are taken into account while determining the Dearness Allowance, which is expressed as a percentage of the basic wage.
