Centre approves 4% DA hike for employees ahead of festive season

The Centre has approved a 4 per cent hike in dearness allowance (DA) for central government employees and pensioners. After the latest revision, central government employees and pensioners will get a dearness allowance of 38 per cent of the basic pay/pension to compensate for increasing prices, Union Minister Anurag Thakur said while announcing the decisions of the Cabinet Committee on Economic Affairs (CCEA). He added that the government has allocated Rs 12, 852 crore. 

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."

Dearness allowance was last hiked in March with effect from January 1, 2022 in keeping with the 7th pay commission. With this hike, dearness allowance went up 3 per cent over the previous 31 per cent in March. This rise in dearness allowance was based on the recommendations of the seventh Central Pay Commission. Central government provides its employees with a dearness allowance to help them tide over the inflation-like situation. 

Dearness Allowance is calculated as a percentage of the basic salary and is revised by factoring in inflation and prices. 

Also read: Govt likely to increase dearness allowance by 4%

Also read: Dearness Allowance for govt employees increased by 3%