New-Delhi: The Union Cabinet on Wednesday has increased Dearness allowance (DA) of the Central Government Employees by 4 per cent taking it effectively at 38 per cent from 34 per cent.
The decision was taken in the Union Cabinet meeting today, according to reports.
The central government revises dearness allowance and dearness relief on 1 January and 1 July every year, but this decision is usually announced in March and September.
The Union Cabinet in March approved to increase 3 per cent in dearness allowance (DA) under the 7th Pay Commission, thus taking the DA to 34 per cent of the basic income.
“The Union Cabinet chaired by the Prime Minister, Narendra Modi, has given its approval to release an additional instalment of dearness allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. January 1, 2022, representing an increase of 3 per cent over the existing rate of 31 per cent of the basic pay/ pension, to compensate for price rise,” the Prime Minister’s Office had said in a statement.
The DA hike will result in an increase in wages for approximately 52 lakh Central government employees and 65 lakh pensioners.
Dearness allowance (DA) is given to government employees, while the dearness relief (DR) is for pensioners.
The free ration scheme, popularly known as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), has been extended for the next three months, the government announced on Wednesday. Union minister Anurag Thakur said the Central cabinet has decided to extend the PMGKAY scheme for the next 3 months.
The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was launched in March 2020 to provide free 5 kg foodgrains per person per month under the National Food Security Act (NFSA).
The free ration scheme was introduced to reduce the hardship of the beneficiaries during the lockdown period which was done due to Covid-19.