The Ministry of Finance has issued the office order hiking the Dearness Allowance to Central Government employees by 3% to 34%. The order was issued within a day of the Union Cabinet approving the hike in dearness allowance The rates will be applicable to the central government staff drawing salary as per the 7th Pay Commission recommendation. For the earlier scales, separate orders will be issued. The hike will also apply to civilian employees of the Defence Services, while in respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Defence and Railways Ministry, respectively. A separate order will asl be issued for Central Autonomous Bodies. The revised rates will be effective from 1st January 2022. The order says that the arrears of the DA should not be paid before the payment of the salary for the month of March. Hence it is likely that the arrears for the three months, January, February and March will be paid during the month of April and the salary for April 2022 (FY 22-23) will be based on the new revised Dearness Allowance, The order also says that the DA is calculated on only the 'basic pay' that means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay, This hike will benefit over 50 lakh government employees. The Dearness Relief for the pensioners will also go up by 3% to 34% a separate order will be issued for DR.
No. 1/2/2022-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 31st March 2022.
Subject: Grant of Dearness Allowance to Central Government employees – Revised Rates effective from 01.01.2022.
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/4/2021-E-II (B) dated 25″ October 2021 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 31% to 34% of the Basic Pay with effect from 1 January 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.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
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. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
7. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.
All Ministries/Departments of the Government of India (as per standard distribution list)
Copy to: C&AG, UPSC, etc. as per standard endorsement list.