Dearness Allowance Hike 28% For Central government employees

The Centre on Wednesday has announced to restore Dearness Allowance (DA) benefits for its employees and pensioners. Union Minister Anurag Thakur said the Union Cabinet has approved to increase the DA from 17 percnt to 28 percent. The hike will come into force from 1 July 2021.

“The Dearness Allowance (DA) for Central Government and pensioners employees has been increased from 17% to 28%. This will be applicable from 1st July 2021,” he said.

After the cabinet meeting, Thakur said that the DA and DR hike will impose an additional annual burden of Rs 34,401 crore on the exchequer.

The DA is a part of the salary given to the employees and pensioners in the central government. Notably, the DA payment of employees has not been revised since January 2020. 

The Joint Council Machinery (JMC) for Central Government Employees had earlier cleared the proposal for DA hike. The JMC consists of representatives of employees union, including senior government officers. It is headed by the Cabinet Secretary.

In April last year, the central government had frozen DA hike with effect from January 2020 due to the Covid-19 pandemic.

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