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Union government increases DA and DR of employees

New Delhi: Union Cabinet has hiked the dearness allowance (DA) and dearness relief (DR) of central government employees. The DA and DR will be hiked by 3%. At present, the rate is at 28% of the basic pay/pension.

The new decision will benefit more than 47.14 lakh central government employees and 68.62 lakh pensioners. It will cost around 9,488.70 crore per year for the government.

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Earlier in July, the Cabinet Committee chaired by Prime Minister Narendra Modi had increased the DA and DR to 28% from 17%. The DA and DR instalments are due for four periods namely January 1, 2020, July 1, 2020, January 1, 2021 and July 1, 2021. The government had frozen all such hikes last year due to Covid-19 pandemic.


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