Diwali bonanza: Dearness Allowance hiked for government employees by 3 per cent

The decision to hike the Dearness Allowance was taken in the Cabinet meeting in New Delhi. The revision would put an additional burden of Rs 9,488.7 crore on the government's exchequer annually.

Asianet Newsable English

New Delhi, First Published Oct 21, 2021, 3:19 PM IST | Last Updated Oct 21, 2021, 4:03 PM IST

The Union Cabinet on Thursday approved a three per cent increase in the Dearness Allowance of central government employees and pensioners. The move will benefit over 47 lakh central government employees and 68.62 lakh pensioners. The revised Dearness Allowance rates will come into effect from July 1, 2021.

The revision, which comes weeks before Diwali, will increase the Dearness Allowance and Dearness relief for central government employees to 31 per cent. The government had restored Dearness Allowance benefits for its employees and pensioners in July this year and had increased the allowance from 17 per cent to 28 per cent. Prior to that, the central government had temporarily halted the benefits for central government employees and pensioners in 2020 in light of the Coronavirus outbreak in the country.

The decision to hike the Dearness Allowance was taken in the Cabinet meeting in New Delhi. The revision would put an additional burden of Rs 9,488.7 crore on the government's exchequer annually. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

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