Good news for Central Govt employees! Cabinet hikes DA by 3%, to be in effect from July 1, 2021

The Union Cabinet has approved hike in the Dearness Allowance (DA) of central government employees. The decision was announced during a cabinet briefing on Thursday.

The DA will be hiked by 3 per cent to 31 per cent which will incur an additional cost of Rs 9,488.70 cr. The decision is expected to benefit 47.14 lakh central employees and 68.62 lakh pensioners. It will be implemented with effect from 1 July 2021.

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The government also approved implementation of PM Gatishati National Master Plan which will be monitored in a three-tier system, Union Minister for Information and Broadcasting Anurag Thakur.   

The Cabinet Secretary will chair the committee which will be an empowered group of secretaries. The committee will comprise of secretaries and head of logistics will act as member convenor, Thakur said. A multi-modal network planning group will also be set-up which will be supported by a technical support unit (TSU) of the Ministry of Commerce.

The TSU will comprise of domain and subject experts from aviation, maritime, road transport, rail and ports etc.