The 7th Pay Commission has confirmed that the Dearness Allowance (DA) will be hiked by 4% for central government employees. This additional 4% interest on DA will come into effect from July 1, 2022. Hence, the new effective DA rate for central government employees will be 38%. Additionally, the Dearness Relief (DR) rate has also been hiked by 4% to 38% for the central government Pensioners.
Earlier, the central government employees were getting 34% DA. With this DA hike, more than 50 lakh central government employees and around 62 lakh pensioners are expected to benefit.
Ahead of the festive season, it is good news for the central government employees, as they were expecting this DA hike for the last few weeks. They will now receive 38% of their basic salary as DA. The Union Cabinet led by Prime Minister Narendra Modi has taken the decision to hike the DA rate.