The Modi government has hiked the Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent (from 31 per cent to 34 per cent) for its employees and pensioners, sources told India TV on Wednesday. With the latest increase which will be effective from January 2022, the DA and DR now stand at 34 per cent.
The hike will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners.
The additional instalment will be effective from January 1, 2022, said an official release after the Union Cabinet meeting which was presided over by Prime Minister Narendra Modi.
"This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," it said.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 9,544.50 crore per annum.
The hike comes at a time when petrol and diesel prices have been increased by oil companies by more than Rs 5 per litre in the last nine days. The DA hike will provide much-needed relief to the central employees and pensioners amid skyrocketing fuel prices and inflation.
DA is a component of the salary of employees particularly aimed at giving them relief from the impact of inflation. DR is given to pensioners.
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