The Cabinet Committee has approved increase the Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from 1st 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 1st January,2020, 1st July, 2020 and 1st 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 1st January,2020, 1st July, 2020 and 1st January, 2021.
However, the rate of DA/DR for the period from 1st January,2020 to 30th 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.