The Union Government on Thursday approved 3 per cent hike on in Dearness Allowance(DA) and Dearness Relief(DR) given to central government employees and pensioners .
With this DA for such employees now stands at 31 per cent from 28 per cent earlier . This hike will be applicable from July 1,2021 . This move will benefit about 47.14 lakh Central government employees and 68.62 lakh pensioners. It will cost the exchequer Rs 9,488.70 crore per annum.
Earlier in September, the Department of Expenditure, under the Ministry of Finance, had issued a memorandum stating the retired central government employees will receive cash payment and gratuity.
It may be noted that the government temporarily halted dearness allowance and dearness relief benefits for central government employees and pensioners in 2020 due to a shortfall in revenue collection after the Covid-19 pandemic devastated the economy.
After the fresh approval, the DA and DR for central government employees and pensioners will increase to 31 per cent. Therefore, DA and DR benefits received by central government employees and pensioners will rise further when the approved decision comes into effect.
