The Union Cabinet, on October 21 approved to release an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners with effect from July 01, 2021, representing an increase of 3 per cent over the existing rate of 28 per cent of the Basic Pay/Pension, to compensate for price rise.

“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 9,488.70 crore per annum,” said Union Minister Anurag Thakur.