Policy

Govt restores DA for employees; raises it to 28% effective July 1

PTI New Delhi | Updated on July 14, 2021

The hike represents 11 per cent, incurring an additional annual burden of ₹34,401 crore to the exchequer.

The Union Cabinet on Wednesday decided to restore Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners from July 1, 2021 while increasing the rate of allowance to 28 per cent.

The increase in the DA and DR will impose an additional annual burden of ₹34,401 crore on the exchequer, Minister of Information and Broadcasting Anurag Thakur told reporters after the cabinet meeting.

In view of the Covid-19 pandemic, the Union Government had frozen the three additional instalments of the DA and DR, which were due from January 1, 2020, July 1, 2020 and January 1, 2021.

The move, Thakur said, will benefit about 48.34 lakh central employees and 65.26 lakh pensioners.

"The government has decided to increase DA to central government employees and DR to pensioners with effect from July 1, 2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension," said a release.

"#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid," the official handle of PIB tweeted.

Published on July 14, 2021

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