Union Cabinet hikes DA for Central government employees to 28 percent

The Union Cabinet took several decisions to boost exports in garment sector, promoting investment in the Animal Husbandry and Shipping sector. The Union Cabinet chaired by Prime Minister Narendra Modi gave its approval to hike the Dearness Allowance to Central Government employees and Dearness Relief to pensioners from existing 17 per cent of the Basic Pay and Pension to 28 per cent. It will be effective from 1st of this month.

While briefing the media in New Delhi yesterday, Information and Broadcasting Minister Anurag Thakur said that in view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional installments of Dearness Allowance and Dearness Relief which were due from 1st January 2020, 1st



July, 2020 and 1st January 2021 had been frozen. Mr Thakur said, now the decision was taken to increase the DA and DR from 17 per cent to 28 per cent.

The Union Cabinet also approved continuation of Rebate of State and Central taxes and Levies (RoSCTL) on exports of Apparel, Garments and Made-ups. Mr Anurag Tahakur said that the scheme will continue till the 31st of March 2024 and the step will boost export in global markets.

The Cabinet also approved scheme for promotion of flagging of merchant ships in India by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and Central Public Sector Enterprises.