Centre Approves 3% DA Hike For Central Govt Employees

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 3 per cent dearness allowance (DA) and dearness relief (DR) hike for central government employees and pensioners on Thursday. Cabinet approved to release an additional installment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 represents an increase of 3% over the existing rate of 28% of the Basic Pay / Pension, to compensate for the price rise. 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. 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