• Festive Bonanza: Dearness Allowance Hiked For Central Govt Employees, Pensioners

    This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners
    Others

    The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday has approved to release an additional installment of Dearness Allowance (DA)  to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. July 1, 2021, representing an increase of three per cent over the existing rate of 28 per cent of the basic pay /pension, to compensate for price rise.

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

    The new hike comes just days ahead of Diwali and is aimed to benefit about 47.14 lakh Central Government employees and 68.62 lakh, pensioners.

    The combined impact on the exchequer on account of both DA and DR would be Rs 9,488.70 crore per annum.   The increase reflects the additional installments arising on  January 1, 2020, July 1, 2021, and  January 1, 2021.

    Earlier this year, the Central government had decided to hike the DA for central government employees from 17 per cent to 28 per cent. 

    The government had suspended all such hikes last year as the Covid-19 pandemic had dented its revenue.  The DA and DR installments are due for four periods - January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021.
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