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Cabinet hikes dearness allowance to 28% for Central govt employees

New Delhi: In a major relief to central government employees and pensioners, the Union Cabinet headed by Prime Minister Narendra Modi on Wednesday approved a steep hike in Dearness Allowance (DA) and Dearness Relief (DR) to 28 per cent from 17 per cent, Union Minister Anurag Thakur announced.

The hike in DA and DR rates will be effective from July 1, 2021, the minister said adding that this move will impact 48.34 lakh central government employees and 65.26 lakh government pensioners.

“The DA rate which was 17 per cent earlier, has been risen by 11 per cent to 28 per cent,” the minister said.

Till now, central government employees use to get DA of 17 per cent on their basic salary. Last year, the Cabinet had approved a 4 per cent hike in DA for central employees, which was supposed to be effective from January 1, 2021. However, in April 2020, the increment was stalled due to the pandemic.

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