Dearness Allowance Increased 3% To 34%, Effective From 1 January 2022

The DA for central government employees increased to 34%, effective January 1, 2022

The Cabinet has approved a proposal to increase the love allowance of central government employees and retirees by 3 per cent to 31 per cent of basic salary from 31 per cent previously, effective January 1, 2022.

The increase in DA is according to the accepted formula, which is based on the recommendation of the 7th central salary commission.

The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to issue additional installments of dearness allowance (DA) to central government employees and dearness relief (DR) to retirees effective January 1 this year, representing an increase of 3 per cent over the existing rate. there is 31 per cent of the basic salary/pension, to offset the price increase.

Retail inflation, or consumer price inflation, remains above the upper end of the Reserve Bank of India’s target range of 2-6 per cent for two consecutive months of the year.

The cabinet notification mentions the term “basic salary” to mean salary issued according to the 7th salary commission matrix and does not include any other type of salary such as special salary.

The combined impact on the treasury due to both affection allowance and affection relief is Rs.9,544.50 crore per annum.

This will benefit about 47.68 lakh central government employees and 68.62 lakh retirees. It will apply to civil servants and those working in the defense service.

The affection allowance was increased by 3 per cent to 31 per cent last year, effective July 1, 2021.


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