DA and DR for Central government employees and pensioners hiked by 4%

The Union Cabinet on Wednesday has announced 4% hike in Dearness Allowance (DA) for central government employees and Dearness relief (DR) for pensioners as Festival Bonanza.. With this increase in DA employees now stands at 38% of the basic pay/pension as against 34% earlier.

DA and DR Hiked by 4%

The hike will be applicable with effect from July 1 2022. Earlier In March 2022, the centre has increased DA by 3 % from 31% to 34% effective from January 1 2022. The additional financial inferences after the increase of DA to employees are estimated at Rs 6,591.36 crores per annum and Rs 4,394.24 crore in the financial year 2022-23 ( 8 months from July 2022) to February 2023.

In case of Pensioners .the additional financial inferences after the increase of DR are estimated at Rs 6,261.20 Crore per annum, and Rs 4,174.12 crore in the financial year 2022-23. The combined impact of both Dearness allowance and Dearness relief would be Rs 12,852.56 crore per annum and Rs 8,568.36 crore in the current financial year.

This is the 4th hike in DA allowance since rate hike was stopped in 2020 due to Covid-19. The DA and DR rates were hiked from 17% to 28% in July 2021..The rates were hiked again in October 2021 from 28% to 31%.. In March 2022 The centre had increased DA rates by 3% from 31 % to 34% effective from January 1 2022. The centre had frigid three additional installments of DA and DR due to Pandemic which were due from January 1,2020 , July 1 2020, and January 1 2021.