NEW DELHI: The Union Cabinet has decided to increase the Dearness Allowance (DA) of the central government employees and Dearness Relief (DR) for pensioners by 3 percent. The DA, which is 31 per cent of the basic salary, will be increased to 34 per cent with effect from January 2022.

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