Pan India

Centre hikes Dearness Allowance for government employees

The revised rates will be effective from July 1, 2022 and the staff would be paid the arrears with their latest salaries.

New Delhi: Approving the proposal to increase the dearness allowance (DA) for central government employees and pensioners, the cabinet on Wednesday decided to hike the DA by 4 per cent.

A Cabinet Committee on Economic Affairs (CCEA) meeting headed by Prime Minister Narendra Modi approved the proposal to release an additional installment of DA to compensate for the price rise.

The revised rates will be effective from July 1, 2022 and the staff would be paid the arrears with their latest salaries.

This decision of the Union Cabinet will benefit about 68.62 lakh central government employees and 68.62 lakh pensioners besides those employed in defence services, while an additional burden of Rs 13,000 crore will be imposed on the government exchequer annually.

The dearness allowance is revised on January 1 and July 1 every year.

Meanwhile, Union minister Anurag Thakur announced that the Cabinet has also decided to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for another three months.

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