The Union Cabinet, on Wednesday, announced an increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners.

In the meeting chaired by Prime Minister Narendra Modi, the Cabinet gave its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, reflecting an increase of 3 per cent over the existing rate of 31 per cent of the Basic Pay/Pension, to compensate for price rise.

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

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be ₹9,544.50 crore per annum. This will benefit about 47.68 lakh Central Government employees and 68.62 lakh pensioners.

The DA was due in January and normally the Centre announces it towards the end of March so that it can be paid from the next financial year.

Confederation of Central Government Employees leader, KKN Kutty, said employees had protested against the non-payment of DA for 18 months and that protest still persists. “We did not object freezing the DA in 2020 as the country was dealing with a pandemic. We were denied DA for 18 months between 2020 January and 2021 July. But now, according to the Budget figures, both direct and indirect tax collection surpassed the estimates. But the DA for 18 months is not paid yet. The Centre does not have the right to deny or freeze the DA. During occasions like the 1971 war, DA was frozen, but was paid later when the war got over. But now our revenue crisis is over according to Budget figures, but the DA is not paid. An economy will grow only if it has purchasing power and the Centre should try to enhance the purchasing power of workers,” said Kutty.

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