7th pay commission: Dearness Allowance (DA), Dearness Relief (DR) hiked for govt employees, pensioners
India Today
7th pay commission: Dearness Allowance (DA) and Dearness Relief (DR) have been hiked for central government employees and pensioners respectively.
Dearness Allowance (DA) and Dearness Relief (DR) were on Wednesday hiked by three per cent for central government employees and pensioners respectively. The union cabinet chaired by the Prime Minister Narendra Modi has given its approval to release the additional installment of DA and DR.
The new rates are effective from January 1, 2022. This will benefit around 47.68 lakh central government employees and 68.62 lakh pensioners.
The hike represents an increase of 3 per cent from the existing rate of 31 per cent of the Basic Pay or pension, to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,544.50 crore per annum.
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