Cabinet Announces 3% DA Hike For Central Govt Employees, Pensioners Ahead Of Diwali

After this hike, the DA of central employees will increase to 31 percent. This new rate will be applicable from July 1.

Union Minister Anurag Thakur | File Image

New Delhi: The Cabinet has approved a 3 percent hike in the Dearness Allowance (DA) of central government employees and pensioners on Thursday. After this hike, the DA of central employees will be increased to 31 percent. This new rate will be applicable from July 1, 2021. This move will benefit 47 lakh employees and 68.62 lakh pensioners and will cost the exchequer Rs 9,488.70 crore per annum.

This announcement comes ahead of Diwali, the DA hike is seen as a Diwali bonanza for central government employees.

"Dearness Allowance for Central Government employees to be increased from 28% to 31%, will be effective from July 1, 2021," said cabinet minister Anurag Thakur.

#Cabinet approves an increase of 3% Dearness Allowance to Central Government employees and Dearness Relief to Pensions, due from 01.07.2021

An increase of 3% over the existing rate of 28% of the Basic Pay / Pension

- Union Minister @ianuragthakur #CabinetDecisions pic.twitter.com/ntxrXtyxDL

— PIB in Maharashtra 🇮🇳 (@PIBMumbai) October 21, 2021

Earlier in July, the Centre had restored Dearness Allowance (DA) benefits for its employees and pensioners and had increased the DA from 17 percent to 28 percent.

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DA forms a part of the salary given to government employees and pensioners. It is to be noted that the payment of DA of employees has not been revised since January 2020. The Centre announced the decision after concluding the cabinet meeting that started at 11:30 am on Thursday.

On September 28, a meeting of the Union Council of Ministers was held under the chairmanship of Prime Minister Modi. It was told that Union ministers Gajendra Singh Shekhawat and Piyush Goyal gave a presentation regarding the implementation of various projects, policies, and government announcements.

Prior to this presentation, the implementation of all the projects and improving and accelerating the progress of government schemes were discussed.

In a meeting prior to the above on September 14, health minister Mansukh Mandaviya and education minister Dharmendra Pradhan gave a presentation on efficiency and time management.

The meeting of the Council of Ministers was termed as a 'chintan camp' and more such sessions would be held to further improve governance, said the sources.

In Chintan Shivir, Prime Minister Modi had emphasised that simple living is the way of life. In this meeting, the Prime Minister had asked the ministers to adopt the best things of their colleagues.