In a big relief to the Central Government employees and pensioners, the Union Cabinet on Wednesday hiked the Dearness Allowance (DA) and Dearness Relief (DR) from 17 per cent to 28 per cent. The DA hike was frozen due to the pandemic for the last 18 months. Briefing mediapersons, the Information and Broadcasting Minister Anurag Thakur said the new increased DA and DR will be with effect from July 1.
“The Cabinet Committee chaired by Prime Minister Narendra Modi has approved an increase in the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28 per cent, representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension. In view of the unprecedented situation which arose due to the Covid-19 pandemic, three additional installments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen,” said a Government statement.
The increase reflects the additional installments arising on January 1, 2020, July 1, 2020 and January 1, 2021. The rate of DA and DR for the period January 1, 2020, to March 30, 2021, shall remain at 17 per cent.
