Cabinet approves increase in Dearness Allowance and Dearness Relief

The Cabinet Committee chaired by Prime Minister Narendra Modi on Wednesday approved an increase in Dearness Allowance (DS) to Central Government employees and Dearness Relief (DR) to pensioners.

As per an official release, the increased DA and DR, which will come into effect from July 1, will be 28 per cent representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay/Pension.

In view of the unprecedented situation which arose due to the COVID-19 pandemic, Cabinet has also decided to freeze three additional instalments of DA to Central Government employees and Dearness Relief DR to pensioners, which were due from January 1, 2020, July 1, 2020, and January 1, 2021.

“Now, the government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from July 1 to 28 per cent representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay/Pension,” the release said

The increase reflects the additional instalments arising on January 1, 20202, July 1, 2020, and January 1, 2021. The rate of Dearness Allowance/Dearness Relief for the period January 1, 2020, to June 30, 2021, shall remain at 17 per cent,” it added.

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