Cabinet approves additional instalment of 4% Dearness Allowance and Dearness Relief to Central Government employees and pensioners

49.18 lakh employees and 67.95 lakh pensioners to benefit

4% benefit to cost Rs.12,868.72 crore per annum to exchequer

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2024 representing an increase of 4% over the existing rate of 46% of the Basic Pay/Pension, to compensate against price rise.

 The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,868.72 crore per annum.  This will benefit about 49.18 lakh Central Government employees and 67.95 lakh pensioners.

 This increase is in accordance with the accepted formula, which is based on the recommendations of the 7^th Central Pay Commission.

PIB

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No. 1(6)/2021/D(Pay/Services)
Ministry of Defence
Department of Military Affairs
D(Pay/Services)

New Delhi, the 06 Apr, 2022

To

The Chief of the Army Staff
The Chief of Naval Staff
The Chief of the Air Staff

Subject: Payment of Dearness Allowance to Armed Forces Officers and Personnel Below Officer Rank including NCs(E) – Revised rates effective from 01.01.2022.

Sir,

I am directed to refer to this Ministry’s letter No. 1(6)/2021- D(Pay/Services) dated 27 Oct 2021, on the subject cited above and to say that the President is pleased to decide that the Dearness Allowance payable to Armed Forces Officers and Personnel Below Officer Rank, including Non-Combatants (Enrolled), shall be enhanced from the existing rate of 31% to 34% with effect from 01.01. 2022.

2. The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 01.01.2022 PDF – DoE

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of Pay rules of Defence Force Personnel.

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. This letter issues with the concurrence of Finance Division of this Ministry vide their Dy. No. 65/AG/PD/2022 dated 05.04.2022 of RF. N. 2(2)/2021 (AG/PD) based on Ministry of Finance (Department of Expenditure) O.M. No. 1/2/2022-E-II(B), dated 31 March, 2022.

Yours faithfully,

(T.Johnson)
Gp Capt
Director (Pav/Services)

Distribution: As per standard list attached.

Download Payment of Dearness Allowance to Armed Forces Officers and Personnel Below Officer Rank including NCs(E) – Revised rates effective from 01.01.2022 PDF

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GOVERNMENT OF INDIA (भारत सरकार)
Ministry of Railways (रेल मंत्रालय)
Railway Board (रेलवे बोर्ड)

PC-VII No.- 182

RBE No: 40/2022

File No. PC-VII/2016/1/7/2/1

New Delhi, dated: 05.04.2022

The General Manager/CAOs(R),.
All India Railways & Production Units,
(As per mailing list)

Sub: Grant of Dearness Allowance to Railway employees – Revised Rates effective from 01.01.2022.

The undersigned is directed to refer to this Ministry’s letter RBE No. 76/2021 dated 26.10.2021 (F.No. PC-VII/2016/1/7/2/1) on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Railway employees shall be enhanced from the existing rate of 31% to 34% of the Basic Pay with effect from 1st January, 2022.

Also check: Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 01.01.2022 PDF – DoE

2. The term “Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7 CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be distinct element of remuneration and will not be treated as pay within the ambit of Rule 1303 (FR 9(21)), Indian Railway Establishment Code, Volume -II (Sixth Edition – 1987) – Second Reprint 2005.

Also check: DA for Postal Employees Revised Rates effective from 01.01.2022 PDF

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March, 2022.

6, This issues with the concurrence of Finance Directorate of Ministry of Railways.

(Jaya Kumar G)
Deputy Director, Pay Commission-VII & HRMS
Railway Board

Download Grant of Dearness Allowance to Railway employees – Revised Rates effective from 01.01.2022 PDF Railway Board Order

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Central government employees will continue to get Dearness Allowance (DA) and Dearness Relief (DR) at the current rates

In the meantime, the centre has recently made it clear that central government workers are to continue to collect Dearness Allowance (DA) and Dearness Relief (DR) at the present rate in the wait for the increase in the dearness allowance as outlined in the 7th Pay Commission recommendations.

Also check: No DA Hike for central government employees due to economic pain from the coronavirus pandemic spread

The central government officials have 17 per cent DA and wait for the rise in the DA from July 2021 for the period January-June 2020.

In an order in April, central government officials and pensioners were declared to have no 21 percent DA from 1 January 2020. According to the recommendations of the 7th Pay Board, the DA rate was raised from 17 to 21 percent in March.

Employees were said to not have any arrears charged between 1 January 2020 and 30 June 2021. DA prices were updated on 1 July.

Also read: Appeal to unfreeze the DA by the petitioner at Delhi High Court

It was agreed that the supplementary payment of the Central Government staff’s Dearness Allowance, and of the Central Government Pensioners Dearness Allowance due on 1 January 2020, was not payable. The extra charge from 1 July 2020 and 1 January 2020 of the Dearness and Dearness allowance shall not be paid. But Dearness Allowance and Dearness Relief continue to be charged at present rates, according to the April order.

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7th Pay Commission Latest News Today 2019 – Cabinet Approves 5 percent DA Hike from July 2019

5% DA from July 2019 Declared

More than one crore of employees and pensioners are waiting for the announcement of hike in DA from July 2019.

Today the Centre has decided to increase 5 percent Dearness allowance for Central Government employees and Pensioners with effect from 1st July 2019. The second installment of 5 percent additional Dearness allowance is increased for Central Government employees and Pensioners with effect from July 2019. After enhancement of 5% the DA is increased from 12% to 17%.

Also check: Cabinet approves 5% additional DA/DR to Central Government employees due July, 2019 – PIB

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The hiked rate of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners will be applicable retrospectively from July this year

These are revised twice a year from January 1 and July 1.

DA Arrears

5% DA Arrears for three months from July to September 2019.

DA from January 2020

The 5% additional Dearness allowance for the period of 6 months from July to December 2019. After that the next episode of ‘DA from January 2020’ will start!

Check this 7th pay commission pay hike latest news

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7th Pay Commission Latest News Today 2019 – 5% Hike in DA for Central Government employees and pensioners before Diwali

DA Announcement before Diwali

More than one crore Central Government employees and pensioners are looking for DA announcement from the month of September. The Central Government has not taken any decision on DA yet. We hope that the announcement of 5% increase in DA additionally from July 2019 will be declared before the grand festival of Diwali.

Also read: 7th CPC DA Hike will announce today for central government employees and pensioners

17% of 7th CPC Matrix Pay

At present, all Central government employees are getting 12% Dearness allowance of their matrix pay and if Govt declare 5% hike in DA, the total DA will become 17%. For example, if an employee gets Rs. 49000 matrix basic pay, he will get enhanced DA will be Rs. 8330 per month (Rs. 5880 + Rs. 2450 = Rs. 8330).

First Time 5% DA

After implementation of 7th Pay Commission, this is the first time 5% increase in DA

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

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Expected DA July 2019

As per 7th CPC recommendation, DA is expected to be 5% which is pending since July 2019. There is a chance to get announcement with in one or two days if so, employees would get arrears of three month or else it will be in next month probably. The much speculated 5% hike in DA may now come through as early possible.

As Festival season is so closer, but the government delaying the announcement of DA hike. we may expect at anytime as soon as possible and employees look forward the festival bonus from the government

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

Dearness Allowance(DA) is depending on the cost of living adjustment allowance paid to government employees and pensioners.

DA is important not only for the central government employees but for the state Government employees also. Normally it will be announced during September and released on October. Now Employees want to know the clarity about DA hike. The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.

All Central Government employees and Pensioners including Defence and Railways expecting the announcement of additional Dearness allowance due from July 2019.

DA and DR from July 2019: 5% + 12% = 17%

In regular practice, DA announcement will be in the month of March and September. The 2nd installment of additional DA from July 2019 may be declared today!

Cabinet approval on DA

All pre procedures are completed from the department side and finally Cabinet Cabinet will decide on the agenda item of hike in Dearness Allowance for Central Government employees and pensioners due from July 2019.

Usually, DA hike will be declared after Cabinet Committee approval in the first or second week of March and September. After approval of Cabinet Committee, Finance Ministry will issue formal orders for payment of Dearness allowance to all eligible employees with arrears for two months.

Hence, this is last week of September and Centre is likely to declare 5% DA hike today!

Read More for Expected DA for Central Government Employees

Calculation of Additional DA

According to the AICPIN (Consumer Price Index for Industrial Workers Base Year 2001=100) from January to July 2019 published by Labour Bureau, calculation of additional Dearness Allowance will be as follows…

A=Month/Year, B=CPI(IW) BY2001=100, C=12 Months Total, D=12 Months Average, E=App DA %

As per the recommendations of 7th pay commission, additional DA and DR from July 2019 may be enhanced by 5% from the existing rate of 12%.

All are waiting for the good news soon!

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