New Delhi: Dearness Allowance for central government employees and Dearness Relief for pensioners have been increased from 17 to 28 percent. From July 1, the hike will be in effect. The announcement comes as a major relief to central government employees and pensioners, as the Dearness Allowance and Dearness Relief were put on hold last year in response to the Covid-19 pandemic.
1. As of today, the Cabinet Committee chaired by Prime Minister Narendra Modi approved increasing Dearness Allowance for government employees and Dearness Relief for pensioners to a whopping 28 percent.
2. There is an increase of 11% over the existing rate of 17% of the Basic Pay or Pension.
3. The release of three additional amounts of Dearness Allowance to Central Government employees and Dearness Relief (DR) to pensioners that were due between January 1, 2020, July 1, 2020 and January 1, 2021, have been suspended in view of the unprecedented situation caused by the Covid-19 pandemic.
4. Accordingly, the government has decided to increase Dearness Allowance to Government employees and Dearness Relief to pensioners starting July 1, 2021.
5. The increase reflects the additional installments due on January 1, 2020, July 1, 2020 and January 1, 2021, the government said in a statement.
6. The rate of Dearness Allowance or Dearness Relief will remain at 17% for the period beginning January 1, 2020 to June 30, 2021.
7. The policy will cost the Government approximately Rs 34,400 crore and affect 48,34,000 central government employees and 65,26,000 pensioners, Anurag Thakur, Minister of Youth Affairs and Sports, and Minister of Information and Broadcasting, told reporters while announcing the policy.