DA hike to 31% effective from July 1: FinMin

The Union Cabinet had last week approved a 3% hike in dearness allowance for central government employees

October 26, 2021 03:51 pm | Updated 03:51 pm IST - New Delhi

The decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners. File.

The decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners. File.

Dearness Allowance for central government employees has been hiked to 31% of the basic pay from 28% with effect from July 1, 2021, the Finance Ministry said.

In an office memorandum, the Department of Expenditure, under the Finance Ministry, said the term 'basic pay' means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay, etc.

"....the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 28 per cent to 31 per cent of the basic pay with effect from July 1, 2021," said the office memorandum dated October 25.

The hike will also apply to civilian employees paid from the Defence Services, while in respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Defence and Railways Ministry, respectively.

The Union Cabinet had last week approved a 3% hike in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners over the 28% existing rate.

The decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners.

In July this year, and DA rate was increased from 17% to 28%. With a 3% hike now, the DA rate will become 31%.

The combined impact on the exchequer on account of the Dearness Allowance and Dearness Relief would be ₹9,488.70 crore.

Following the COVID pandemic outbreak, the government had frozen the three additional instalments of the DA and DR, which were due from January 1, 2020, July 1, 2020, and January 1, 2021. The freeze was lifted from July 1, 2021, and the DA, DR rate was hiked by 11 percentage points to 28 %.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.