Cabinet approves an increase of 3% over the existing rate of 28% of the Basic Pay / Pension



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The Union Cabinet has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This represents a 3% increase on top of the existing 28% rate, effective from 1st July 2021. The decision aims to compensate for rising prices and will benefit approximately 47.14 lakh employees and 68.62 lakh pensioners, costing the exchequer an estimated Rs. 9,488.70 crore annually.

Cabinet approves release of an additional instalment of 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 This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners Impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum The Union Cabinet, chaired by the Prime
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FAQ :

The Cabinet has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.

The Dearness Allowance has increased by 3% over the existing rate of 28% of the Basic Pay/Pension.

The increase is effective from 1st July 2021.

This increase will benefit approximately 47.14 lakh Central Government employees and 68.62 lakh pensioners.

The combined impact on the exchequer for both Dearness Allowance and Dearness Relief is estimated to be Rs. 9,488.70 crore per annum.

The increase is in line with the accepted formula, based on the recommendations of the 7th Central Pay Commission, and is intended to compensate for price rises.




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