Cabinet Approves 3% DA to CG Employees and Pensioners Effective from 1.1.2022

Today Union Cabinet Approves 3% Additional DA to CG Employees and Pensioners Effective from 1.1.2022

Total DA from January 2022 = 3% + 31% = 34%

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2022

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 representing an increase of 3% over the existing rate of 31% of the Basic Pay/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. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh, pensioners.

34% DA from 1st January 2022

All Central Government employees, pensioners and family pensioners are benefited from an additional DA and DR hike by 3% as per their basic salary or basic pension! The extra benefit of additional DA will be a minimum of Rs. 540 per month!

34% DA Calculation Formula

As per the recommendation of the 7th pay commission, the Dearness Allowance calculation is being calculated with the AICPIN data of 6 months from Jan to Jun and Jul to Dec of every year! The below table describes the calculation of DA and DR!

34% DA Finmin Order PDF Download

The Ministry of Finance issued official order regarding enhanced 3% additional Dearness Allowance with effect from 1st January 2022 to CG employees and pensioners today! Click to Download DA Order PDF

Month	AICPIN (IW) BY 2016	DA %
July	122.8	31.76
August	123.0	32.27
September	123.3	32.75
October	124.9	33.26
November	125.7	33.8
December	125.4	34.4