New Delhi: The central government employees will enjoy a 3 percent hike in dearness Allowance (DA) under the Seventh Pay Commission. The Union Cabinet headed by Prime Minister Narendra Modi approved the matter on Wednesday.
Following the hike, the central government employees will get 34 per cent allowance from now on. In addition to the DA, dearness relief (DR) has been increased by 3 percent. Retired government employees will also get DR at 34 percent effective from February 1, 2022.
A total of 47.68 lakh central government employees and 68.62 lakh pensioners will benefit from the increased cost of living allowance and dearness relief.
The central government said that the increased cost of allowances and dearness relief will now cost the government Rs 9,544.50 crore annually.
It was in October 2021, the central government employees got the same allowance at the same rate of 31 percent.