The government has hiked the dearness allowance (DA) component for central government employees by 4% effective from July 1, 2022. The DA has been hiked to 38%. Apart from DA hike, the government has also hiked the dearness relief (DR) for pensioners with same percentage. The hike in DA will benefit central government employees, central government pensioners and family pensioners getting pension from the central government.

“Cabinet approves release of additional instalment of Dearness Allowance and Dearness Relief @ 4% to Central Government employees and pensioners, due from 01.07.2022,” PIB tweeted.

The last time DA was hiked was in March 2022. During this hike, DA was increased by 3% to 34% effective from January 1, 2022.

A hike in DA translates to a hike in the salary of government employees.

What is Dearness allowance/Dearness Relief?

Dearness allowance is usually received by government employees to compensate for rising inflation. The decision announced today will put more money in the hands of government employees and pensioners.

Dearness Allowance/Dearness Relief is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value.