The Union Cabinet on Wednesday approved the effective increase of dearness allowance (DA) to the Central government employees and dearness relief to pensioners from 17% of basic pay/pension to 28% with effect from July 1.
Announcing the decision taken at a Cabinet meeting chaired by Prime Minister Narendra Modi, Information and Broadcasting Minister Anurag Thakur said it was a major decision for the benefit of 48.34 lakh Central employees and 65.26 lakh pensioners. The DA hike was frozen with effect from January 2020 due to the COVID-19 pandemic, he pointed out.
“In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of DA to Central Government employees and dearness relief to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen,” a government statement said.
The increase of 11% reflected the three additional instalments arising on January 1, 2020, July 1, 2020 and January 1, 2021, it said, adding that the actual rate for January 1, 2020 to June 30, 2021 would remain 17%.
