Central government employees Dearness Allowance hiked by 3%

To compensate for price increases, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners, effective 1.7.2021, representing a 3 percent increase over the existing rate of 28 percent of the Basic Pay / Pension.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer of Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per year. This will benefit approximately 47.14 lakh Central Government employees and 68.62 lakh pensioners.