Business & Economics

Dearness Allowance For Centre Employees Restored, Hiked To 28%

BP World Bureau | Jul 15 2021 01:09:22 PM
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NEW DELHI: Centre restored Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners from July 1, 2021.

Union Cabinet also approved a hike in allowance's rate to 28%, which will impose an additional annual burden of Rs 34,401 crore on the exchequer, according to Anurag Thakur, Minister of Information and Broadcasting. 

Centre had frozen the three additional installments of the DA and DR which were due from January 1, 2020, July 1, 2020, and January 1, 2021, due to the COVID-19 pandemic. 

Read: IMA Writes To CM About Kerala's Unscientific Lockdown 

Dearness Allowance is an allowance paid to government employees, public sector employees (PSE), and pensioners to mitigate the impact of inflation.

Dearness relief is given to the central government pensioners to compensate them for rising cost of living.

Union cabinet restored DA and DR to give a financial boost to employees and pensioners ahead of the forthcoming festival season.