The Union Cabinet on October 21 approved a three percent hike in the dearness allowance (DA) for central government employees, with effect from July 1, 2021.
Along with DA, the Centre has also decided to raise the dearness relief (DR) for pensioners by three percent.
The decision will benefit over 48 lakh central government employees and more than 65 lakh pensioners.
The cost to be borne by the exchequer, due to the fresh DA and DR hikes, would be around Rs 9,488.70 crore per annum.
With the latest increase, the DA for the employees has been cumulatively raised to 31 percent.
