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Cabinet approves 3% DA, DR hike

Cabinet approves 3% DA, DR hike

After this hike, the DA will increase to 31 per cent. DA is always calculated at a specific percentage of the basic salary of an employee.

DA is always calculated at a specific percentage of the basic salary of an employee DA is always calculated at a specific percentage of the basic salary of an employee

The Union Cabinet approves a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners today. Prior to this, the government had decided to hike the DA for central government employees by 11 per cent from 17 per cent to 28 per cent.

After this hike, the DA will increase to 31 per cent.The latest DA hike will benefit 47.14 lakh Central Government employees and 68.62 lakh pensioners. The exchequer will bear Rs 9,488.70 crore on account of the latest Dearness Allowance and Dearness Relief.

This will be a welcome development for the central government employees and pensioners after the government approved pending DA hike, which came into effect from July 1, 2021. Three instalments of DA for the central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, were stalled due to the COVID-19 pandemic.

DA is always calculated at a specific percentage of the basic salary of an employee. This is then added to the basic salary, along with other components of the salary, which further makes up the total salary of an employee.

“To know how much monthly salary will grow post-DA restoration, a central government employee is advised to check one’s monthly basic salary, which is decided by the 7th pay commission pay matrix. After checking out their monthly basic salary, they are advised to check their existing DA,” Shiv Gopal Mishra, Secretary- Staff Side, National Council of JCM said on the 7th pay matrix.

Also read: DA hike: Odisha govt hikes dearness allowance of employees, pensioners by 11%

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