On Thursday, the Union Cabinet authorised a 3% increase in dearness allowance (DA) for central government workers and dearness relief (DR) for pensioners, compared to the current amount of 28% of basic pay/pension. Prime Minister Narendra Modi presided over a meeting of the Union Cabinet that made the decision. The revised DA and DR rates will take effect on July 1, 2021.
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Union Minister for Information and Broadcasting Anurag Singh Thakur told reporters that the Cabinet decision would help 47.14 lakh central government employees and 68.62 lakh, pensioners. “This rise is in conformity with the recognised formula, which is based on the recommendations of the 7th Central Pay Commission,” an official statement stated.
Earlier in September, the Ministry of Finance’s Department of Expenditure released a memorandum indicating that retiring central government personnel will be paid in cash and receive a gratuity. The Centre has already authorised an increase in DA and Dearness Relief (DR) for central government workers and pensioners from 17% to 28%. The government had halted new DA and DR instalments because of the Covid-19 epidemic.
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Employees would not receive any arrears due to non-revision of DA for the preceding period due to the Centre’s DA increase, which took effect on July 1. The Cabinet Committee on Economic Affairs (CCEA) also approved the PM GatiShakti National Master Plan, which includes the institutional structure for multi-modal connectivity rollout, implementation, monitoring, and support mechanisms.
