Dearness Allowance hike 3 per cent cleared by Union Cabinet

New Delhi, Oct 21: The Union Cabinet has approved a hike in dearness allowance and dearness relief by 3 per cent.

The decision was taken by the Union Cabinet. This would come as a relief for the Central Government employees after the government approved the pending DA and DR hikes in July.

The centre had temporarily halted DA and DR in 2020 to a shortfall in revenue owing to the COVID-19 pandemic. After the previous hike was approved the DA for Central Government employees increased to 28 per cent.

If the DA is hike now, this would mean that the same would be hiked to 31 per cent. This would come as a major relief for the Central Government employees who await for some good news always relating to the 7th Pay Commission.

Highlights of ths Cabinet meet:

• Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners
• An increase of 3% over the existing rate of 28% of the Basic Pay / Pension. Impact on the exchequer would be Rs.9,488.70 Crore per annum.
• 47.14 lakh Central Govt. employees and 68.62 lakh pensioners will be benefitted.
• Additional installment to be effective from 1st July 2021.