Categories: Economy

Centre approves hike in DA/DR for central government employees and pensioners

The Union Cabinet has approved a further hike of 3 per cent in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners. The increase of 3% is over the existing rate of 28 per cent of the basic pay/pension and will be effective from July 1, 2021. Now after this hike, the DA/DR will increase to 31%.

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It must be remembered that earlier in July 2021, the government had announced an 11% hike in DA/DR from 17% to 28% of the basic pay/pension. It will cost the exchequer Rs 9,488.70 crore per annum. As a result, the DA and DR instalments are due for four periods including January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021. However, the rate of DA/DR for the period between January 2020 to June 2021 shall remain at 17%.

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Sumit Arora

As a team lead and current affairs writer at Adda247, my role involves researching and creating informative and engaging content aimed at helping candidates prepare for national and state-level competitive government exams. I specialize in delivering insightful articles that keep aspirants updated on the latest current affairs trends and developments. My primary focus is on educational excellence, ensuring that our readers are well-prepared and informed to face their exams with confidence. Through meticulously crafted content, I aim to guide and support candidates in their journey toward success.