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7th Pay Commission News: 3 Per Cent DA Hike For Central Government Employees Ahead Of Diwali

7th Pay Commission News: In a cheering moment for the central government employees and pensioners ahead of the Diwali festive season, the union cabinet has approved a 3 per cent hike in the dearness allowance (DA) and dearness relief (DR) of the CG employees and pensioners under the 7th Pay Commission (7th CPC).

7th Pay Commission News: DA Hiked by 3 Per Cent

With this DA hike, the dearness allowance (DA) and dearness relief (DR) of the central government employees and pensioners will increase to 31% from the existing 28% which came into effect from July 1, 2021, and will benefit around 47.14 lakh CG employees and 68.62 lakh pensioners under the 7th Pay Commission (7th CPC) once the DK hike comes into effect, with an additional instalment to be effective from July 1, 2021.

The decision to increase the dearness allowance (DA) and dearness relief (DR) was approved by the Union Cabinet following a cabinet meeting on Thursday. The DA hike, however, is likely to cost the exchequer a whopping Rs. 9,488.70 crores annually.

“The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2021 representing an increase of 3% over the existing rate of 28% of the Basic Pay/Pension, to compensate for price rise,” a PIB release said.

“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 9,488.70 crore per annum. This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners,” the released added.

It may be noted that the Centre had temporarily halted the DA and DR benefits for the CG employees and pensioners in 2020 due to a deficit in revenue collection owing to the Covid-19 pandemic.

DA DR Hike Highlights

  • Dearness Allowance (DA) to CG employees and Dearness Relief (DR) to pensioners, due from 01.07.2021
  • An increase of 3% over the existing rate of 28% of the basic pay/pension
  • To benefit 7.14 lakh Central Government employees and 68.62 lakh, pensioners
  • Exchequer on account of both DA and DR would be Rs. 9,488.70 crores per annum

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