Centre approves 3% DA hike for Central govt employees

The Union Cabinet approved a 3 per cent dearness allowance (DA) and dearness relief (DR) hike for central government employees and pensioners on Thursday.

The DA and DR hike was approved by the Union Cabinet after a meeting was held earlier in the day. It is a welcome development for central government employees and pensioners.

In July 2021, the government finally approved pending DA and DR hikes for central government employees and pensioners after almost a year.

It may be noted that the government temporarily halted dearness allowance and dearness relief benefits for central government employees and pensioners in 2020 due to a shortfall in revenue collection after the Covid-19 pandemic devastated the economy.

The resumption of DA and DR hikes in July benefitted lakhs of central government employees and pensioners.

After the fresh approval, the DA and DR for central government employees and pensioners will increase to 31 per cent. Therefore, DA and DR benefits received by central government employees and pensioners will rise further when the approved decision comes into effect.