Central Government Approves 3% DA Hike For Employee Before Diwali, Salary Hike

The Union Cabinet of the central government has approved 3% Dearness Allowance (DA) and Dearness Relief (DR) for the central government employee, ahead of Diwali, one of the biggest festive seasons in India. Hence, the central government employees will enjoy a salary hike. The present DA rate is 28% of the basic pay/pension, so the additional 3% DA will be counted over it. So, now, the DA allowance for central government employees and pensioners will be 31%.

Earlier, in July the central government hiked the DA allowance from 17% to 28%. So, this DA hike is good news for central government employees.

The hike will be applicable both for the existing employees and the central government pensioners. The hike is going to benefit around 47.14 lakh central government employees and 68.62 lakh central government pensioners.

This hike will cost the central government of Rs. 9,488.70 crore PA. Yesterday, the Union Cabinet organized a meeting where they discussed this DA hike of 3%. It is a Diwali bonanza for the central government employees.

Earlier in July, this year, the central government had approved a long-pending DA and DR hikes for their employees and pensioners. It was stuck for almost a year, for approval. Due to a low revenue collection in the last year, because of the Pandemic, the central government had to halt the DA and DR hike process. Hence, this 3% DA hike announcement in October 2021 is certainly being welcomed by the employees.

However, the central government is yet to pay the increased DA of July and August 2021 to the employees and pensioners. Also Read: 7th Pay Commission Salary Hike