The Union Cabinet has approved today a hike in Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent for central government employees and pensioners with effect from 1st July, 2021,
The move comes months after the Centre approved an 11 percentage point hike in DA and DR given to central government employees and pensioners from 17 per cent to 28 per cent.
The hike was applicable from July 1, 2021, and benefitted more than 48 lakh central government employees, and 65 lakh pensioners.
With the latest revision, the rate of DA and DR stands increased to 31 per cent, the minister said adding that this is set to benefit 47.14 lakh government employees and 68.62 lakh pensioners.
Further, the total cost towards this incurred by the central government will be Rs 9,488.74 crore annually.