The Union Cabinet on Thursday approved an additional release of Dearness Allowance (DA) to the Central government employees and Dearness Relief (DR) to the pensioners. The decision will be effective from July 1, 2021.
With this, the DA for such employees now stands at 31 per cent from 28 per cent earlier.
The DA and DR hike announcement will benefit around 47.14 lakh Central government employees and 68.62 lakh pensioners respectively.
Earlier 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.
Prior to this, the Centre had approved an increase in DA and Dearness Relief (DR) given to central government employees and pensioners from 17 percent to 28 per cent.