The Cabinet on Wednesday approved 28 per cent of Dearness Allowance to Central Government Employees and Dearness Relief to Pensioners. Information and Broadcasting Minister Anurag Thakur said that about 1.14 crore employees and pensioners will benefit from this decision.
The Union Cabinet has decided to increase the DA after the ban was put on DA amid the COVID-19 pandemic last year. Employees and pensioners have not received DA dues from January 1, 2020, to June 30, 2021. It was mentioned earlier that any hike in DA due to revision on July 1, 2021, will also take into account the previous hike.
“The Cabinet Committee chaired by Prime Minister Narendra Modi has approved enhancement of dearness allowance to Central Government Employees and Dearness Relief to Pensioners to 28 per cent with effect from 01.07.2021, an increase of 11 percentage points from the existing rate of 17 per cent of the Basic Pay/Pension,” the Center said in a statement.
“In view of the unprecedented situation which arose out of the COVID-19 pandemic, three additional installments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were payable from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen,” the cabinet said in a statement.
The increase in the DA and DR will put an additional annual burden of Rs 34,401 crore on the exchequer, Union Minister Anurag Thakur said. For this financial year, the hike will cost the exchequer Rs 22,934.56 crore from July to February.
Dearness Allowance (DA) hike calculation
At present, government employees are getting a 17 per cent dearness allowance. For example, if the basic salary of a government employee is Rs 20,000, then the DA is Rs 3,400. With 28 per cent, dearness allowance in a month would be Rs 5,600. This calculation will be applicable from July 1.