Centre approves 3% Dearness Allowance hike for central govt employees

After this hike, the DA will increase to 31%; the move will benefit 4.7 mn employees and 6.8 mn pensioners

Ahead of festive season, the Union Cabinet on Thursday approved a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners with effect from July 1, 2021, said Union Minister Anurag Thakur. Prior to this, in July the government had decided to hike the DA for central government employees by 11%, from 17% to 28%. After this hike, the DA will increase to 31%.

The DA hike will cost Centre Rs 9,500 crore per year, said Thakur. The move will benefit 4.7 million employees and 6.8 million pensioners.

This will be a welcome move