Dearness Allowance (DA) of the central government employees and Dearness Relief (DR) to pensioners have been increased by 3 per cent to 34 per cent of the basic pay with effect from January 1, 2022, the Union Finance Ministry said on Wednesday.

The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2022 represents an increase of 3 per cent over the existing rate of 31 per cent of the Basic Pay/Pension, to compensate for the price rise, the Finance Ministry said in a statement.