News Analysis India

Tag: Dearness Relief

  • Cabinet hikes dearness allowance by 3 per cent for central government employees

    By PTI

    NEW DELHI: The Union Cabinet on Wednesday hiked Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent to 34 per cent to benefit over 1.16 crore central government employees and pensioners.

    The additional instalment will be effective from January 1, 2022, said an official release after the Cabinet meeting.

    “This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” it said.

    The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 9,544.50 crore per annum.

    This will benefit about 47.68 lakh central government employees and 68.62 lakh pensioners, the release said.

  • Finance Ministry issues order to implement Cabinet decision on DA, DR hike from July 1

    By PTI
    NEW DELHI: The Finance Ministry on Tuesday issued an order to implement the Cabinet decision to hike Dearness Allowance for central government employees to 28 per cent from July 1.

    Last week, the Union Cabinet had approved an 11 percentage point hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners with effect from July 1, benefitting more than 48 lakh central government employees, and 65 lakh pensioners.

    With this, the new DA rate will be 28 per cent, up from 17 per cent. In an office memorandum, the Department of Expenditure under the Finance Ministry said the DA payable to central government employees shall be enhanced from the existing rate of 17 per cent to 28 per cent of basic pay.

    Centre issues notification for revised rates of Dearness Allowance. Copy of memorandum. @NewIndianXpress @TNIEBiz pic.twitter.com/MpLcrfZMR1
    — Anuradha Shukla (@anu1122) July 20, 2021

    The increase subsumes the additional instalments arising on January 1, 2020; July 1, 2020, and January 1, 2021.

    “These orders shall also apply to the civilian employees paid from the Defence Services Estimates,” it said, adding for Armed Forces personnel and Railway employees separate orders will be issued by the respective ministries.

    In April last year, the Finance Ministry had put on hold an increment in dearness allowance (DA) till June 30, 2021, due to the COVID-19 pandemic. The rate of DA from January 1, 2020, to June 30, 2021, was 17 per cent.