Clearing away clouds over the rumors of possible rolling out of DA/DR for central government employees and pensioners, the Cabinet under the chairmanship of PM Narendra Modi has announced the increment in allowance by 4%, taking the effective Dearness allowance to 38%.

The move came amid the festive season and is based on the recommendations of the committee on the 7th Pay Commission, the increment is for July-December 2022.

The central government employee and pensioners will receive the increment amount of the allowance in their monthly salary/pension for October, besides receiving arrears for the past three months.

The move that came in the cabinet meeting earlier today is the highest in the past dozens of quarters. On average, the DA hike usually had an increment of 3%, but owing to the massive price rise the government felt the importance of the rise that the central government employees/pensioners are set to receive.

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As per the numbers, the move will benefit over 47 Lakh employees and another 68 Lakh pensioners who are currently registered on the database of the Union. The rising inflation remains a huge crunch for salaried personnel and low-scale business owners.

Against the backdrop of the rapid rise in inflation, the move came as a big reliever for over a crore monthly payment holders. In this move how well the states come up in response for their employees will be a point to look at.

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