Centre approves 4% DA hike for government employees

In a festival bonanza for lakhs of Central government employees and pensioners, the Union Cabinet on Wednesday gave its for the much-awaited hike in Dearness Allowance and Dearness Relief by 4 per cent.

With this, the DA has been increased from 34 per cent to 38 per cent for all the employees. A total burden of Rs 12,852 crore would be borne by the exchequer towards payment of these allowances for the current fiscal, official sources said. From July 1, 2022 till March 31, 2023, a total of Rs 8,568 crore would be spent on it. The move (4% DA hike) will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners. Earlier in March, the Cabinet had hiked the dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners by 3 per cent to 34 per cent from 31 per cent previously, effective January 1, 2022. Stay tuned to this place for latest updates on 7th Pay Commission DA hike.

The last increase in dearness allowance was announced in March, with effect from January 1, 2022. The DA increase in March was 3 per cent over the previous rate of 31 per cent.

Dearness Allowance is provided by the central government for its employees to adjust to the inflation-like situation.

Pensioners also get dearness relief same as the amount received by the employees of the central government.

Delhi | Union cabinet has also decided to increase Dearness Allowance (DA) by 4 per cent for central government employees and pensioners: Union minister Anurag Thakur pic.twitter.com/a3fY12AEgC
— ANI (@ANI) September 28, 2022