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Cabinet clears hike in DA, DR for central government employees, pensioners

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New Delhi: Central government employees and pensioners have got a reason to cheer ahead of Diwali. The Union Cabinet has approved the release of an additional installment of dearness allowance (DA) and dearness relief (DR).

The decision was announced at the Cabinet meeting, chaired by Prime Minister Narendra Modi on Thursday. Accordingly, an additional installment of DA will be released to central government employees and DR to pensioners with effect from July 1, 2021. This is an increase of 3 per cent over the existing rate of 28% 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 combined impact on the exchequer on account of both DA and DR will be Rs 9,488.70 crore per annum.  This increase will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners.

 

 

 

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