New Delhi, July 14: The Union Cabinet on Wednesday approved restoration of dearness allowance or DA for central government employees. In a major relief for central government employees, who receive salary and allowances as per the 7th Pay Commission recommendations, the Centre revoked suspension of DA benefits. The employees now get 28 percent hike in DA. This will be applicable from July 1. 7th Pay Commission Latest News: Hike in TA Unlikely for Central Government Employees From July 1, Here's Why.

"The dearness allowance for central government and pensioners employees has been increased from 17% to 28%. This will be applicable from 1st July 2021," Union Minister Anurag Thakur said. DA is hiked twice in January and July. The Centre had approved a 4 percent increase in DA last year. This was to be effective from January 1, 2020. There was an increase of 3 per cent in June 2020 and in January 2021, the dearness allowance was hiked once again by 4 percent.

However, central government employees currently get 17 percent DA under the 7th Pay Commission. It is because the previous three hikes in DA, supposed to be effective from January 1, 2020, July 1, 2020 and January 1, 2021, had been put on hold since the coronavirus pandemic hit the country. Now that the Centre has decided to restore full benefits of DA, central government employees will get 28 percent hike in the allowance. A big hike is likely in their take-home pay post DA-restoration.

In March, then Minister for State for Finance, Anurag Thakur had said that the pending installments of DA for central government employees and DR for pensioners would be restored from July.

(The above story first appeared on LatestLY on Jul 14, 2021 02:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website