7th Pay Commission: Dearness allowance raised by 3% for central govt employees ahead of Diwali

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

Oct 22, 2021 09:10 IST India Infoline News Service

Diwali festival is just around the corner and the government has already announced a gift to its employees. The Union Cabinet has approved to release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 01, 2021.

This represents an increase of 3% over the existing rate of 28% of the Basic Pay / Pension, to compensate for the price rise.

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.

This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners.

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