D.A. Increased by 3% for Central Government Employees and Pensioners

On Wednesday, the central government in a cabinet meeting approved the proposal to hike the Dearness Allowance for central government employees and pensioners. The DA has been increased by 3% to 34%. This decision has brought some relief to these employees as the country is going through a period of high inflation. Dearness Allowance is an allowance paid by the government to its employees as well as pensioners to effectively counter the rising inflation. This decision will benefit around 47.68 lakh central government employees and 68.62 lakh pensioners. Currently, around 31% of the basic salary is paid as Dearness Allowance to these employees and pensioners. The last hike in DA was approved in the month of October 2021. The Dearness Allowance was increased from 28% to 31%. The Cabinet also informed that the increase in allowance will be effective from January 1, 2022.