The Union Cabinet today approved a three- percent increase in dearness allowance and dearness relief for central government employees and pensioners, said Union Information and Broadcasting Minister Anurag Thakur on Thursday.
Dearness Allowance and Dearness Relief will go up from 28 per cent to 31 per cent and the increase will be effective from July 1, 2021, said Thakur.
He said that this increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,488.70 crore per annum which will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners,” he added.
