7th Pay Commission: Giving relief to the central employees, the Central Government on Wednesday announced to increase the dearness allowance from 17 percent to 28 percent. After the cabinet meeting, Union Minister Anurag Thakur said in a press conference that Dearness Allowance (DA) for central government employees and pensioners is being increased from 17 percent to 28 percent. This will come into effect from 1 July 2021.
The Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will be applicable from 1st July 2021: Union Minister Anurag Thakur pic.twitter.com/SCy3AS2hoN
– ANI (@ANI) July 14, 2021
With this, the Union Cabinet has decided to restore the Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners with effect from July 1, 2021.
48.34 lakh central employees benefited
Union Information and Broadcasting Minister Anurag Thakur said in a press conference after the cabinet meeting that the increase in DA and DR will put an additional burden of Rs 34,401 crore on the government’s exchequer. In view of the COVID-19 pandemic, the central government had frozen three additional installments of DA and DR, which were due from 1 January 2020, 1 July 2020 and 1 January 2021. Thakur said that 48.34 lakh central employees and 65.26 pensioners would benefit from this step.
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It has been said in a release that the government has decided to increase the DA of central employees and DR of pensioners with effect from July 1, 2021, in which the existing rate of 17 percent of basic pay / pension is being increased by 11 percent.
PIB tweeted on its official handle that the cabinet has restored three installments of Dearness Allowance and Dearness Relief with effect from July 1, 2021, with an increase of 11 per cent from the existing rate of 17 per cent of Basic Pay/Pension. No arrears will be paid for the period from 1st January 2020 to 30th June 2021.