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Cabinet approves 3 per cent increase in DA of Central Government employees, pensioners

The government today approved the release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 1 July 2021.

SNS | New Delhi |

The government today approved the release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensions, due from 1 July 2021. The decision was taken by the Union cabinet chaired by the prime minister Narender Modi, the step, the government claims, will benefit around 47.14 lakh Central Government employees and 68.62 lakh pensioners. “An increase of 3 per cent over the existing rate of 28 per cent of the Basic Pay / Pension,” reads the press note of the finance ministry.

“The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an additional instalment of Dearness Allowance  to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 representing an increase of 3 per cent over the existing rate of 28 per cent of the Basic Pay / Pension, to compensate for price rise,” reads the press note of the finance ministry.

This increase, the government explained, is in accordance with the accepted formula, which is based on the recommendations of the seventh 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.  This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.

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