dearness allowance

Centre approves 3% hike in DA/DR for central government employees and pensioners w.e.f July 2021

Centre approves 3% hike in DA/DR for central government employees and pensioners w.e.f July 2021

  • The Union Cabinet has approved a further hike of 3 percent in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners on October 21, 2021.
  • The increase of 3% is over the existing rate of 28 percent of the basic pay/pension and will be effective from July 1, 2021.
  • Now after this hike, the DA/DR will increase to 31%.
  • It must be remembered that earlier in July 2021, the government had announced 11% hike in DA/DR from 17% to 28% of the basic pay/pension. (Read here)
  • It will cost the exchequer Rs 9,488.70 crore per annum.

Points to Remember:

  1. What is the rate of DA/DR for the central government employees and pensioners?
  2. Full form of DA and DR?

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