Good information for central govt workers! Union Cabinet hikes DA from 17% to twenty-eight%

In what comes as an enormous reduction to the central authorities workers, the Union Cabinet on Wednesday restored the proposal of giving them the Dearness Allowance (DA) and Dearness Relief (DR) hike with impact from July 1, 2021.

Announcing the restoration and hike on DA, I&B Minister Anurag Thakur mentioned that Union Cabinet has hiked the Dearness Allowance from 17% to twenty-eight% for central authorities workers. “The Central government has decided to increase the dearness allowance for central government employees and pensioners by 11% to 28%,” mentioned Thakur.

The DA and DR instalments are due for 4 intervals specifically January 1, 2020, July 1, 2020, January 1, 2021 and July 1, 2021.

The authorities froze all such hikes final 12 months as coronavirus had dented its income. The DA hike for central authorities workers is prone to value the federal government about ₹34,400 crore yearly.

Currently, the central workers get DA of 17%. Last 12 months, the Union Cabinet had permitted a 4% improve in DA for presidency workers and pensioners to 21%. This was to be efficient from January 1, 2021.

However, the finance ministry had in April 2020 determined to placed on maintain increment in dearness allowance (DA) for 50 lakh central authorities workers and 61 lakh pensioners until July 2021 because of the COVID-19 disaster.

“In view of the crisis arising out of Covid-19, it has been decided that the additional instalment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional instalments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid,” the Ministry of Finance had mentioned in a memo. However, DA and DR at present charges will proceed to be paid.

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