The Union Cabinet headed by Prime Minister Narendra Modi on Thursday approved a hike in Dearness Allowance and Dearness Relief by 3 per cent for central government employees and pensioners with effect from July 1, 2021.
Information and Broadcasting Minister Anurag Thakur made the announcement during a media briefing.
The move comes months after the Centre approved an 11 percentage point hike in DA and DR given to central government employees and pensioners from 17 per cent to 28 per cent.
The hike was applicable from July 1, 2021, and benefitted more than 48 lakh central government employees, and 65 lakh pensioners.
With the latest revision, the rate of DA and DR stands increased to 31 per cent, the minister said adding that this is set to benefit 47.14 lakh government employees and 68.62 lakh pensioners.
In a press briefing after the Cabinet meeting, Thakur informed that the total cost incurred by the central government will be Rs 9,488.74 crore annually.