Highlights

  • The 4% hike takes the DA to 38%
  • DA is calculated as a percentage of the basic salary

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There are about 50 lakh central government employees and over 61 lakh pensioners

Diwali gift for govt employees; dearness allowance hiked by 4%

Ahead of Diwali festival, the Cabinet approved 4% additional instalment of Dearness Allowance and Dearness Relief to central government employees and pensioners.

The latest increase in DA will benefit around 47.68 lakh central government employees and about 68.62 lakh pensioners and is also applicable for civilian employees and those employed in defence services.

According to reports, the central government employees and pensioners will become entitled to higher amount of Dearness Allowance (DA) and Dearness Relief (DR) respectively, with effect from July 1, 2022.

The central government revises dearness allowance and dearness relief on 1 January and 1 July every year, but this decision is usually announced in March and September.

Earlier in March, the Cabinet had hiked the DA for central government employees and DR for pensioners by 3% to 34% from 31% previously, effective 1 January, 2022.

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