The Government is likely to give the dearness allowance (DA) to central government employees from July 1, 2021, prospectively, rather than retrospectively with arrears.
Dearness Allowance To Be Disbursed Prospectively
Sources at the Finance Ministry told NDTV that the Centre is likely to give the dearness allowance (DA) to central government employees from July 1, 2021, prospectively, rather than retrospectively with arrears.
Cost indexation is likely to take place on June 30 and the percentage is expected to be around 28 per cent according to Finance Ministry sources,
They further pointed out that much will depend on indexation, as DA increase cannot be done with retrospective effect.
The Instalments Of DA And DR Of Employees And Pensioners
Central Government Employees are eagerly waiting for the Dearness Allowance (DA), which has been due from as far back as January 2021.
Due to the covid 19, pandemic Government had frozen three instalments of Da for central government employees and Dr for pensioners due on Jnuary1,2020, July 1, 2020, and January 1, 2021.
The government saved Rs 37,430.08 crore through the move which helped to deal with the crisis.
“The decision to release the future instalments of Dearness Allowance due from 01.07.2021 is taken and the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.”
At present, the Central government employees are getting a DA of 17 per cent. However further hikes in DA were withheld due to the coronavirus pandemic.
There have been expectations among lakhs of central government employees and pensioners that DA will be paid to them on a retrospective basis.
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