The government has hiked the Dearness Allowance for central government employees and Dearness Relief for pensioners to 28 per cent from 17 per cent. The hike with come into effect from July 1. The announcement comes as a major relief for central government employees and pensioners as both Dearness Allowance and Dearness Relief was put on hold last year in the wake of the Covid-19 pandemic.
Dearness Allowance For Central Government Employees Increased: Important Points
1. The Cabinet Committee chaired by Prime Minister Narendra Modi today has approved to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from July 1, 2021 to 28%.
2. Current move is an increase of 11% over the existing rate of 17% of the Basic Pay or Pension.
3. Three additional instalments of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners, which were due from January 1, 2020, July 1, 2020 and January 1, 2021, had been frozen in view of the unprecedented situation which arose due to the COVID-19 pandemic.
4. The government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from July 1, 2021.
5. The increase reflects the additional instalments arising on January 1, 2020, July 1, 2020 and January 1, 2021, a statement from the government said.
6. The rate of Dearness Allowance or Dearness Relief for the period January 1, 2020 to June 30, 2021 will remain at 17%.
7. The decision is expected to cost the government approximately ₹ 34,400 crore and impact around 48,34,000 central government employees and 65,26,000 pensioners, Anurag Thakur, the minister of sports, youth affairs and minister of information and broadcasting said in a press briefing while making the announcement.
#Cabinet approves increase in Dearness Allowance and Dearness Relief with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension#CabinetDecisions— PIB India (@PIB_India) July 14, 2021
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