The Union Cabinet approved an additional payment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners on Thursday. The decision will go into effect on July 1, 2021.
The announcement of DA and DR hikes will benefit approximately 47.14 lakh Central government employees and 68.62 lakh pensioners, respectively. The annual impact of DA and DR on the exchequer would be around 9,488.70 crores.
Earlier in September, the Ministry of Finance’s Department of Expenditure issued a memorandum stating that retired central government employees will receive cash payments and gratuities.