Ahead of festive season, the Union Cabinet on Thursday permitted a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for the central authorities employees and pensioners with impact from July 1, 2021, stated Union Minister Anurag Thakur. Prior to this, in July the federal government had determined to hike the DA for central authorities employees by 11%, from 17% to twenty-eight%. After this hike, the DA will improve to 31%.
The DA hike will value Centre Rs 9,500 crore per yr, stated Thakur. The transfer will profit 4.7 million employees and 6.8 million pensioners.
This will likely be a welcome transfer for the central authorities employees and pensioners after the federal government permitted pending DA hike, which got here into impact from July 1, 2021. Three instalments of DA for the central authorities employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, have been stalled because of the Covid pandemic.
There was a earlier Dearness Allowance improve in January of 2020 the place the federal government hiked it up by 4%, which was adopted by one other 3% improve in June of that very same yr. The central authorities employees noticed one more hike in January of 2021 the place the DA as soon as once more went up by 4%.