The Union Cabinet on July 14 approved increase in the Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners to 28 per cent, with effect from July 1 this year.
This represents a hike of 11 per cent over the existing rate of 17 per cent of the basic pay or pension.
In view of the COVID-19 pandemic, three additional instalments of DA to central government employees and DR to pensioners, which were due from January 1 and July 1, 2020 and January 1 this year had been frozen.
However, the Centre mentioned that no arrears will be provided to the employees and pensioners as the existing rate of 17% has been kept till June this year.
“Now, the government has decided to increase the DA to central government employees and DR to pensioners with effect from July 1 this year to 28 per cent representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay and Pension,” a Cabinet statement said.
The increase reflects the additional instalments arising on January 1 and July 1 last year and January 1 this year, said the statement, adding the rate of DA or DR for the period January 1 last year to June 30 this year shall remain at 17 per cent.
The decision was taken in the Cabinet Committee meeting chaired by prime minister Narendra Modi at his official residence earlier in the day.