On the 21st of October, the Union Cabinet approved a hike of 3 % in the dearness allowance (DA) and dearness relief (DR.) The DA and the DR increase has been announced for the employees working for the Central Government and pensioners. The Dearness allowance is paid by the Central Government to its employees and dearness relief is given to the Central Government pensioners to compensate them for rising cost of living due to inflation.
The DA and the DR hike was pending with the Central Government for a long time (3 months,) finally got approval today, the 21st of October.
This move is welcomed by pensioners and the employees, who were waiting for an increase in DA and DR rates. The last time, the DA and the DR rates were increased in July 2021. On the 14th of July, the Government of India (GoI) announced an increase in the dearness allowance to 28 % and DR to 17 % for the Union Government employees and pensioners.
Post pandemic, this is the second time the Central Government announced a hike in DA and DR money. In the past, the Centre put three additional instalments of the DA and the DR which were due from the 1st of January 2020, the 1st of July 2020 and the 1st of January 2021 on hold. Finally, in July 2021, they announced a hike, taking the then DA to 28 % and DR to 17 %.
With this, from now onwards, the DA rate would be 31 % and the DR rate would be 20%.
In regard to this, the Government of India is expected to release the money, which would cost the exchequer Rs. 9,488.70 crores per annum. In addition, 48,34,000 government employees receiving the DA amount and 65,26,000 pensioners receiving the DR amount would get the new hiked amount benefits.
Stay tuned for further updates.
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