On Wednesday, the government announced a hike in Dearness Allowance (DA) and Dearness Relief (DR) benefits given to central government employees and pensioners from 17% to 28%. As per sources, the Union Cabinet has taken a decision to hike DA and DR after it was put on hold last year.
The decision is a major relief for lakhs of central government employees and pensioners who have been waiting for the announcement for months. The DA and DR hike benefits will come into effect from July 1, 2021. The move is expected to cost the government approximately Rs 34,400 crore.
“The Cabinet Committee chaired by the Hon’ble Prime Minister Shri Narendra Modi today has approved increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension," the Centre said in a statement.
“In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments 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," the Cabinet added in a statement.
According to the National Council of JCM's Shiv Gopal Mishra, the DA arrears of Class 1 employees will range from Rs 11,880 to Rs 37,554. He said that "if the basic pay scale CPC agal level-13 i.e. 7th is calculated for the pay scale of Rs 1,23,100 to Rs 2,15,900 or level-14, the DA arrears of a Central Government employee will be between Rs 1,44,200 and Rs. 2,18,200. "