After dearness allowance hike, now there is another big news on this. The Union Cabinet last week has again approved a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners. Now the Finance Ministry has informed that this increase will be applicable from the salary of July itself. The Finance Ministry said that dearness allowance for central government employees has been increased from 28 percent to 31 percent of the basic pay, which will be effective from July 1, 2021.
The Department of Expenditure under the Ministry of Finance said in an office memorandum that ‘Basic Pay’ means the salary received as per the 7th Pay Commission and does not include any other special pay or allowances. That is, in the dearness allowance made at the rate of 28 percent on the salary of July, August and September, the arrears for these three months will be given at the rate of 31 percent.
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The Department of Expenditure said in the office memorandum issued on October 25, ‘Dearness Allowance payable to Central Government employees will be increased from existing 28 per cent to 31 per cent of basic pay with effect from July 1, 2021. This increase will also be applicable to the civilian employees paid from the defense services, while the defense and railway ministries will issue separate orders in respect of armed forces personnel and railway employees.
The Union Cabinet last week approved the increase of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners by three per cent from the existing 28 per cent. This decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners.
In July this year, the DA rate was increased from 17 per cent to 28 per cent. Now with an increase of three per cent, the DA rate will be 31 per cent. Due to dearness allowance and dearness relief, there will be a total impact of Rs 9,488.70 crore on the exchequer.
