Dearness allowance hiked by 3% for central government employees and pensioners

• The union cabinet has approved the proposal to increase the dearness allowance for central government employees and pensioners by 3% to 34%.
• The increase in allowance will be effective from January 1, 2022.
• The hike in dearness allowance will benefit 1.16 crore government employees including pensioners.

The government’s decision to increase the dearness allowance comes as a relief at a time when inflation is souring high because of surging fuel prices.

The union cabinet on Wednesday approved the proposal to increase the dearness allowance for central government employees and pensioners by 3% to 34%. The increase in allowance will be effective from January 1, 2022.

Dearness Allowance means an allowance paid by the government to its employees as well as pensioners to curb the impact of inflation.

The hike in dearness allowance will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners.

Currently, the central government is paying 31% as dearness allowance.

Prior to this, the government had approved an increase in dearness allowance and dearness relief given to central government employees and pensioners from 28% to 31% in October 2021.

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