The Union government in a major development approved a hike in Dearness Allowance (DA) and Dearness Relief (DR) benefits after it was put on hold last year. The Dearness Allowance (DA) and Dearness Relief (DR) benefits are raised from 17% to 28%. The DA and DR allowances are enjoyed by the central government employees and pensioners.
The central government employees and pensioners have been waiting for the announcement eagerly. Last year, due to the coronavirus pandemic, the Dearness Allowance (DA) and Dearness Relief (DR) were put on hold.
The 11% point rise in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners will be effective from July 1.Thus while earlier the rate was 17%, it hiked to 28%. The 11% raise has been approved as part of the three pending installments from 1 January 2020, 1 July 2020, and 1 January 2021.
Union Cabinet Minister of Information and Broadcasting, Anurag Thakur said that due to the unprecedented situation of covid 19 pandemic, three installments of DA and DR allowance were due. He added that now the central government has decided to hike the Dearness Allowance starting from July 1, 2021, to 28%.
Several media reports were speculating that DA and DR allowance under the 7th Central Pay Commission would be restored after it was frozen last year due to the covid 19 pandemic. The major development of hiking the allowance is expected to cost the central government approximately ₹ 34,400 crores.
This decision of the Union Cabinet will benefit more than 48 lakh central government employees, and 65 lakh pensioners. This decision will impose an additional annual burden of approximately ₹ 34,400 crores on the government’s exchequer.
The Central government also approved the continuation of the Centrally Sponsored Scheme (CSS) for the infrastructure development Facilities for the Judiciary till 2026.