NEW DELHI, Oct 21: In a welcome development for central government employees and pensioners, the Union Cabinet on Thursday approved a three per cent dearness allowance (DA) and dearness relief (DR) hike for central government employees and pensioners.
The increase of three per cent is over the existing rate of 28 per cent of the basic pay/pension. The move will benefit about 47.14 lakh Central government employees and 68.62 lakh pensioners. It will cost the exchequer Rs 9,488.70 crore per annum.
The government had temporarily halted dearness allowance and dearness relief benefits for central government employees and pensioners in 2020 due to a shortfall in revenue collection after the Covid-19 pandemic devastated the economy. In July 2021, the government had resumed the DA and DR hikes following which the allowances were raised to 28 per cent from 17 per cent costing the exchequer over Rs 34,400 crores annually.
After the fresh approval, the DA and DR for central government employees and pensioners will increase to 31 per cent.
(Manas Dasgupta)
