“…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,” the office memorandum issued on October 25 said.
This increase will also be applicable to those civilian employees who are paid defense servicesWhereas in relation to the personnel of the Armed Forces and railway Separate orders will be issued for employees Ministry of Defense and Railways, respectively.
NS central cabinet Last week, the government approved a hike of 3 per cent in Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners from the existing rate of 28 per cent.
About 47.14 will benefit from the decision 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 3 per cent, the DA rate will be 31 per cent.
The combined impact on the exchequer on account of dearness allowance and dearness relief would be Rs 9,488.70 crore.
Following covid Due to the outbreak of the pandemic, the government had put on hold three additional installments of DA and DR, which were due from January 1, 2020, July 1, 2020 and January 1, 2021. The freeze was lifted with effect from July 1, 2021, and the DA was removed. DR rate increased by 11 percentage points to 28 percent.