7th Pay Commission Update: What’s Government’s Statement on DA Hike for Central Govt Employees?

The Union Cabinet on Wednesday announced the DA hike for Central Government Employees in advance of Diwali and Dussehra in 2022. As of July 1, 2022, employees will get an additional 4% interest. The actual new rate of DA would be 38% at this time.

For Central Government Pensioners, the rate of Dearness Relief (DR) has been raised by 4% to 38%. the central government employees' DA rate will increase by 4%, the government has decided. With effect from July 1, 2022, central government employees and pensioners would receive an additional payment of Dearness Allowance and Dearness Relief. About 41.85 lakh central government employees and 69.76 lakh pensioners will benefit from the DA/DR boost.

Central Government Employees had been expecting a 4% Dearness Allowance (DA) rate hike from the Union government for a number of weeks. Now, the Central Government's employees would receive 38% of their basic pay as DA. The government decided to raise the DA during a meeting of the union cabinet presided over by prime minister Narendra Modi.

What’s Government’s Statement on DA Hike?

The Central Government employees and pensioners would be eligible for higher amounts of Dearness Allowance and Dearness Relief, respectively, starting on July 1, 2022, according to a statement from the Union Cabinet.

The additional installment of Dearness Allowance and Dearness Relief @4% to Central Government employees and pensioners due from July 1, 2022, has been approved by the Cabinet, which is presided over by Prime Minister Narendra Modi. This approval is based on the percentage increase in the 12-month average of the All-India Consumer Price Index for the period ending June 2022.

The additional financial effects of this rise in Dearness Allowance for Central Government Employees are estimated to be Rs 6,591.36 billion annually and Rs 4,394.24 billion in the fiscal year 2022–2023, according to the Union Cabinet (i.e., for a period of 8 months from July 2022 to February 2023).

According to estimates, this rise in Dearness Relief for Pensioners will have significant financial effects totaling Rs. 6,261.20 billion annually and Rs. 4,174.12 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).

The combined weight of Dearness Allowance and Dearness Relief on the exchequer would be in the range of Rs 12,852.56 billion each year, and Rs 8,568.36 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).