Forward of festive season, the Union Cupboard on Thursday authorized a 3% hike in Dearness Allowance (DA) and Dearness Reduction (DR) for the central authorities staff and pensioners with impact from July 1, 2021, mentioned Union Minister Anurag Thakur. Previous to this, in July the federal government had determined to hike the DA for central authorities staff by 11%, from 17% to twenty-eight%. After this hike, the DA will enhance to 31%.
The DA hike will value Centre Rs 9,500 crore per 12 months, mentioned Thakur. The transfer will profit 4.7 million staff and 6.8 million pensioners.
This will probably be a welcome transfer for the central authorities staff and pensioners after the federal government authorized pending DA hike, which got here into impact from July 1, 2021. Three instalments of DA for the central authorities staff and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, have been stalled because of the Covid pandemic.
There was a earlier Dearness Allowance enhance in January of 2020 the place the federal government hiked it up by 4%, which was adopted by one other 3% enhance in June of that very same 12 months. The central authorities staff noticed one more hike in January of 2021 the place the DA as soon as once more went up by 4%.