DA, DR hiked, house building advance interest rate cut for Central government staff

While dearness allowance and dearness relief have been increased by three per cent, the interest on payment of advance against house building loan has been reduced from 7.9% to 7.1%

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Over 47 lakh employees and about 68 lakh pensioners will benefit from the hike in dearness allowance (DA) and dearness relief (DR) announced for the Central government employees. That is not all, Central government staff will also enjoyed reduced interest on advance taken towards payment of house building loan.

With effect from January, 2022, the Central government employees will enjoy an increased DA, while pensioners will enjoy increased dearness relief (DR). Both have been hiked by three per cent.

That means, both DA and DR of the Central government employees and pensioners will be 34 per cent of the basic pay/pension. This hike will benefit over 47 lakh employees and about 68 lakh pensioners.

The hike has been announced in line with the recommendations of the Seventh Central Pay Commission.

Till now, the DA and DR were 31 per cent of the basic pay/pension. It is hoped this hike will help the employees with the inflation.

Additionally, Central government employees will now be able to get house building advance at a lower interest rate of 7.1 per cent till March 2023, as opposed to the earlier rate of 7.9 per cent.

An official notification has been issued by the Ministry of Housing & Urban Affairs to this effect.

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