Dearness Allowance (DA) hiked by 3% for central govt employees, pensioners ahead of Diwali

New Delhi: The Union Cabinet today approved an increase of three per cent on the Dearness Allowance (DA) Dearness Relief (DR) for central government employees and pensioners from 28 per cent.
After this hike, the DA will increase to 31 per cent.
The hike comes into effect from 1 July, 2021, announced union Minister Anurag Thakur in a press briefing in New Delhi.

“Dearness Allowance for Central Government employees to be increased from 28% to 31%, will be effective from from July 1, 202,” Thakur informed.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum.

This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.