Dearness Allowance Up For Central Government Employees. Find Out By How Much

The Department of Expenditure of the Finance Ministry has released the revised rates of dearness allowance (DA) for the employees of central government and central autonomous bodies. The revised DA rates will be effective from January 1, 2022, for the employees who were drawing their salary in the pre-revised pay scale as per the 5th, 6th and 7th Pay Commission.

The DA has been increased by 3 per cent for employees who were drawing their pay under the 7th Pay Commission.  These employees will now get a dearness allowance of around 34 per cent of their basic pay. 

Employees drawing salary as per the 6th Pay Commission will get DA of 203 per cent. In the case of employees, under the pay scale fixed by the 5th Pay Commission, the DA has been hiked to 381 per cent.  

As many as 47.68 lakh central government employees are expected to benefit from this move by the Finance Ministry. Close to  67 lakh pensioners will also come under its ambit.

The proposal to release an additional installment of DA to central government employees was approved by the Union Cabinet to compensate for the price rise.

In its office memorandum issued on March 31, 2022, the Department of Expenditure said that the term basic pay in the revised pay structure means the pay drawn in the prescribed level in the pay matrix as per 7th CPC recommendations accepted by the government, but does not include any other type of pay like special pay, etc.

The grant of dearness relief (DR) to central government pensioners and family pensioners will also be applicable at the same revised rate, as it has been fixed for the employees, from January 1. The pension disbursing authorities, including the nationalized banks, will calculate the quantum of DR payable to each pensioner as per the individual case.

The revised rates will be applicable to the following categories of central government pensioners

·        Civilian central government pensioners/family pensioners  

·        The armed forces pensioners, civilian pensioners paid out of the defence service

·        All India service pensioners

·        Railway pensioners/family pensioners

·        Pensioners who are in receipt of provisional pension