Dearness Allowance for Central Government Employees Increased by 11 Percent

The Cabinet Committee has approved increase the Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1^st July, 2021 to 28 percent from the existing rate of 17 percent of the Basic Pay/Pension.

Earlier, due to the COVID-19 pandemic, three additional instalments of DA to Central Government employees and DR to pensioners, which were due from 1^st January,2020, 1^st July, 2020 and 1^st January, 2021, had been frozen.

Now, the Government has decided to increase the DA to Central Government employees and DR to pensioners representing an increase of 11 percent over the existing rate of 17 percent. The increase reflects the additional instalments arising on 1^st January,2020, 1^st July, 2020 and 1^st January, 2021.

However, the rate of DA/DR for the period from 1^st January,2020 to 30^th June, 2021 shall remain at 17 percent.

This will give a financial boost to about 5 million Central Government employees, and more than 6.5 million pensioners, to enhance their spending ahead of the forthcoming festival season.

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