DA hike: Cabinet hikes dearness allowance to twenty-eight% for Central govt workers

In a serious reduction to central authorities workers and pensioners, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday accredited a steep hike in Dearness Allowance (DA) and Dearness Relief (DR) to twenty-eight per cent from 17 per cent, Union Minister Anurag Thakur introduced.
The hike in DA and DR charges will likely be efficient from July 1, the minister stated including that this transfer will influence 48.34 lakh central authorities workers and 65.26 lakh authorities pensioners.
“The DA rate which was 17 per cent earlier, has been risen by 11 per cent to 28 per cent,” the minister stated.

Till now, central authorities workers use to get DA of 17 per cent on their fundamental wage. Last yr, the Cabinet had accredited a 4 per cent hike in DA for central workers, which was speculated to be efficient from January 1, 2021. However, in April 2020, the increment was stalled because of the pandemic.
The rise within the fee of DA and DR could have an extra annual burden of round Rs 34,401 crore on the exchequer, Thakur stated.
The DA and DR installments are due for 4 durations particularly January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021.
However, Thakur stated that the speed of DA and DR from January 1, 2020 to June 30, 2021 shall stay at 17 per cent.
“The rate of dearness allowance and dearness relief for the period 1st Jan 2020 to 30 Jun 2021 shall remain 17 per cent,” he stated.