DA For 50 Lakh Govt Employees Hiked To 28%; Rs 32,000 Cr Extra Annual Expense For Govt
The much-awaited announcement comes as a major relief for lakhs of central government employees and pensioners!
The Dearness Allowance (DA) for Central Government and pensioners employees has been increased from 17% to 28%. This will be applicable from July 1, 2021, said Union Minister Anurag Thakur on Wednesday.
“#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid,”
the official handle of PIB tweeted.
DA Increased For Central Government And Pensioners
The decision was taken at the first in-person meeting of the Union Cabinet, held in over a year, at Prime Minister Narendra Modi’s official residence on Wednesday. The meeting comes ahead of the Monsoon session of Parliament.
Central Government employees get DA of 17% at present, but it became effective from July 2019 with further revision due from January 2020. But due to this pandemic along with subsequent two other revisions were suspended.
The government had frozen all such hikes, which were due from January 1, 2020, July 1, 2020, and January 1, 2021, as coronavirus had dented its revenue.
“The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%,” said the government in a statement.
The Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners by 11% from the existing rate to bring it to 28% effective from 1 July 2021.
“Now the central government has decided to increase the Dearness Allowance to central government employees and Dearness Relief to the pensioners with effect from July 1, 2021, to 28%, representing an increase of 11% over the existing rate of 17% of the basic pay,” Union Minister Anurag Thakur added announcing the cabinet’s decision.
Additional Annual Burden of ?34,401 crores Due To DA And DR!
The increase in the DA and DR will impose an additional annual burden of ?34,401 crores on the exchequer, Minister of Information and Broadcasting Anurag Thakur told reporters after the cabinet meeting.
The move, Thakur said, will benefit about 48.34 lakh central employees and 65.26 lakh pensioners.