The Union Cabinet authorized a 3% increase in central government employees’ and retirees’ Dearness Allowance (DA) and Dearness Relief (DR) on Thursday.
As a result, the DA for such employees has increased to 31% from 28% previously.
The increase will take effect on July 1, 2021.
Union minister Anurag Thakur told the reporters that it will directly help 47.14 lakh central government employees and 68.62 lakh, pensioners.
According to the minister, the hike on DA and DR will add Rs 9,488.7 crore to the exchequer’s annual burden.
After a nearly year-long break, the Centre hiked DA from 17 to 28 percent in July.
In light of the Covid-19 epidemic, the Centre had frozen the three installments of the DA and DR due on January 1, 2020, July 1, 2020, and January 1, 2021.
Thakur also complimented the country’s population on reaching the milestone of 100 million vaccine shots.
“All citizens, especially those on the front lines, are concerned about this, and the Covid fighters have a significant role to play. I congratulate everyone involved “he stated