Govt Increases Dearness Allowance & Dearness Relief
THE CABINET approved a 11% point hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners effective July 1.
Dearness Allowance (DA) is paid by the government to its employees and Dearness Relief (DR) is given to the central government pensioners to compensate them for rising cost of living due to inflation.Because of the Coronavirus pandemic, the DA and DR which had been due on 1 January 2020; 1 July 2020; and 1 January 2021, had been frozen. After the Cabinet meeting on 15 th July, the Information and Broadcasting Minister Anurag Thakur told reporters, “Earlier the percentage for DR & DA was 17%. Now the central government has decided to increase it to 28% with effect from July 1. The move will directly benefit more than 48 lakh central government employees, and 65 lakh pensioners. The amount of DA & DR for 1 January 2020; 1 July 2020; and 1 January 2021, will not be paid. People will receive DA & DR from 1st July which will be 28%.”
The increase in the DA and DR will impose an additional annual burden of Rs 34,401 crore on the government. The decision was made to give a financial boost to the central government employees and pensioners ahead of the forthcoming festival season.
CORRECTION : The increase in the DA and DR will impose an additional annual burden of Rs 34,401 crore on the government.
