Good news! Govt hikes dearness allowances for govt employees, pensioners by 4%

By: |
March 14, 2020 12:30 AM

The changes, which will benefit over 1.13 crore people, will come into effect retrospectively from January 1, 2020.

It will benefit about 48.34 lakh central government employees and 65.26 lakh pensioners. It will benefit about 48.34 lakh central government employees and 65.26 lakh pensioners.

The Union Cabinet on Friday hiked dearness allowances (DA) for government employees and pensioners by 4% to 21%, which will cost the exchequer an additional Rs 14,510 crore in FY21.

The changes, which will benefit over 1.13 crore people, will come into effect retrospectively from January 1, 2020.

“The combined impact on the exchequer on account of both dearness allowance and dearness relief would be Rs 12,510 crore per annum and Rs 14,595 crore in financial year 2020-21 (for a period of 14 months from January 2020 to February 2021),” the government said in a statement.

It will benefit about 48.34 lakh central government employees and 65.26 lakh pensioners. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

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