Union Cabinet approves release of additional instalment of Dearness Allowance
Dearness Allowance for Central Government employees to be increased from 28 per cent to 31 per cent, that will be effective from from July 1, 2021.
New Delhi: Dearness Allowance for Central Government employees to be increased from 28 per cent to 31 per cent, that will be effective from from July 1, 2021.
The Union Cabinet, chaired by Prime Minister Narendra Modi, 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 represents an increase of 3 per cent over the existing rate of 28 per cent of the Basic Pay / Pension, to compensate for the price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th 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.