Anurag Thakur/ file
Anurag Thakur/ file

The Union Cabinet on July 14 approved a hike in Dearness Allowance (DA) and Dearness Relief (DR) given to central government employees and pensioners from 17 percent to 28 percent. In April last year, the finance ministry had put on hold an increment in DA for 50 lakh central government employees and 61 lakh pensioners till June 30, 2021, due to the COVID-19 pandemic even though the Cabinet had approved a hike in DA to 21 percent a month before.

Union Minister Anurag Thakur said: "The Dearness Allowance (DA) for Central Government and pensioners employees has been increased from 17% to 28%. This will be applicable from 1st July 2021," he said.

The DA is a part of the salary given to government employees and pensioners. Incidentally, the payment of DA of employees has not been revised since January 2020.

The increase in the DA and DR will impose an additional annual burden of Rs 34,401 crore on the exchequer, Minister of Information and Broadcasting Anurag Thakur told reporters after the cabinet meeting, PTI said.

In view of the COVID-19 pandemic, the Union Government had frozen the three additional instalments of the DA and DR which were due from January 1, 2020, July 1, 2020 and January 1, 2021.

(With PTI inputs)

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