The central government gives approval for the 3% DA hike for the government employees

Central government

Central government

New Delhi: The Union Government has given a 3% dearness allowance (DA), dearness relief (DR) hike for all the central government employees and the pensioners on Thursday. This 3% increase is over the existing rate of 28% of the basic pay and pension. This decision is further going to be beneficial for around 47.14 lakhs of the Central government employees and even for around 68.62 lakh pensioners. And it will cost the exchequer Rs 9,488.70 crore per annum.

These DA and DR hikes were approved by the Union Cabinet after a meeting regarding this was held earlier that very day. And this decision is a very welcoming and important step for all the central government employees and pensioners. In July 2021, the government finally gave the approval regarding the pending hikes of the DA and DR, after almost a year. It can also be said that this allowance regarding the DA and DR reliefs was temporarily halted during 2020 because of the small revenue collection that took place due to the Covid-19 pandemic, which led to the disaster in the economy. 

This resumption of the DA and the DR hikes that were passed during July benefitted around lakhs of the Central government employees and the pensioners. This decision came into effect on 1st July 2021 and following that the DR and DA-led to an increase from 17% to 28%. The government even indicated the move regarding the restoration of the DA and DR hikes that would cost Rs 34,400 Crore. And after this fresh approval by the Central government, the DA and DR will increase up to 31%. Hence the DA and the DR benefits that are received by the central government employees and the prisoners will thus lead to a rise once the approved decision comes to an effect.   



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