Union Cabinet hikes DA by 3% for Central Government employees and pensioners

The wait is over. At last, The Union Cabinet approved Dearness Allowances by three percent on October 21. With this increase, DA for central government employees will be 31% and most importantly, it will be effected from 1st July, 2021. That means, employees  will get arrears from July,2021. Also, along with DA, the Cabinet has decided to increase Dearness relief(DR) by 3% for central government pensioners.

Earlier, DA was announced for January 2020 but later freezed by the Central Government due to Covid19 pandemic outbreaks in India. At that time, Centre postponed DA up to July 2021. Recently Centre cleared those dues in July 2021 by increasing DA by 11% resulting cumulative DA 17% to 28%. 

And now, with this hike, current DA will goes to 31% from existing 28%. Although, Government will have to bear the cost of Rupees 9488.70 crore per annum. But, It will benefit over forty eight lakh central government employees and approximately sixty five lakh pensioners on the eve of festivals as Diwali Bonanza.