Cabinet hikes DA to 28% for Central govt employees effective July 1

New Delhi, July 14 (PTI): The Union Cabinet on Wednesday decided to restore Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners from July 1, 2021 while increasing the rate of allowance to 28 per cent.

In a major relief to central government employees and pensioners, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved a steep hike in Dearness Allowance (DA) and Dearness Relief (DR) to 28 per cent from 17 per cent.

The increase in the DA and DR will impose an additional annual burden of Rs 34,401 crore on the exchequer, Minister of Information and Broadcasting Anurag Thakur told reporters after the cabinet meeting.

In view of the COVID-19 pandemic, the Union Government had frozen the three additional instalments of the DA and DR which were due from January 1, 2020, July 1, 2020 and January 1, 2021.

The move, Thakur said, will benefit about 48.34 lakh central employees and 65.26 pensioners. ”The government has decided to increase DA to central government employees and DR to pensioners with effect from July 1, 2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension,” said a release.

”#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid,” the official handle of PIB tweeted.

Disclaimer :- This story has not been edited by The Sen Times staff and is auto-generated from news agency feeds.
Source: PTI