Diwali Bonanza: Dearness Allowance hiked by 3% for Central Government Employees

New Delhi: The Central Government has hiked the Dearness Allowance by 3% with effect from July 1, 2021 that will benefit over 47 lakh central government employees. The increase of 3 percent is over the existing rate of 28 per cent of the basic pay/pension.

The move will cost the exchequer Rs 9,488.70 crore per annum.

Also read: Attention Parents! Your kids are heading towards a disruptive future; give them lessons on ‘Sanskar’: SP Anand Mishra

The Centre had 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 in July benefitted lakhs of central government employees and pensioners.

Earlier, the DA for central government employees was hiked pushing it to 28 percent. Therefore, the DA will increase to 31 per cent now.

In September, the Department of Expenditure, under the Ministry of Finance, had issued a memorandum stating the retired central government employees will receive cash payment and gratuity.

The hike in DA will help lakhs many central government employees ahead of the festivities. Diwali celebrations are here, and this hike in the DA has charmed the festive mood among the central government employees.