For about eighteen months now, the Dearness Allowance for central government employees and Dearness Relief for central government pensioners for three pending installments has been suspended.
While the finance ministry had informed that the pending DA instalments for all the recipients will be restored as and when the decision is taken, initially this date was set for July 1, 2021.
However, in a Cabinet meeting conducted on June 26, many positive news was released for central government employees and pensioners, as expected.
You can learn more about it from the article published by Trak.in on June 26.
Regarding the paying the pending three installments on DA for government employees, the Government has finalised it September 2021.
This means that instead of July 1, 2021, the three pending installments of DA payment for all 1.13 crore recipients will be restored with the September salaries.
The three instalments of DA and Dearness Relief are due from 1.1.2020, 1.7.2020 and 1.1.2021.
Govt to Restore Pending DA Installments in September
In March 2020, the Minister of State for Finance, Anurag Thakur announced a hike/revision of 4% in the Dearness Allowance received by central govt employees and pensioners, meaning they would receive a DA hike of 21% from 17%.
However, the DA was further hiked by 3% in June 2020, followed by another hike of 4%, leading to a cumulative hike of 7%. This means the recipients would receive a DA at 28%, on adding the three pending instalments.
The central government employees are currently getting 17% DA.
Regarding the three pending installments, while the government will be restoring the DA from July 2021, the last three installments will be credited/restored in September, along with that month’s salaries.
The government will also be paying arrears for July and August 2021 months in September along with the salary.
The data on DA of June 2021 is also expected to come in July 2021. According to Zee Business, the DA could further hike from the existing 28% to 31%, demarcating a 3% hike in June 2021.
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