Good news for central government employees; Dearness Allowance hiked to 28%
Union Minister Anurag Thakur confirmed that the Union Cabinet had taken a decision to hike DA after it was put on hold last year.
In a massive relief for lakhs of central government employees, the government on Wednesday hiked the Dearness Allowance given to them from 17 per cent to 28 per cent.
The Dearness Relief for retired employees will also be unfrozen.
Union Minister Anurag Thakur confirmed that the Union Cabinet had taken a decision to hike DA after it was put on hold last year. The new DA rate will be effective from July 1, 2021.
The DA revision will impose an additional burden on Rs 34,400 crore on the exchequer.
The dearness allowance of 17 per cent has been continuing since 2019 as the subsequent revision was frozen in view of the Coronavirus pandemic.
The dearness allowance is normally revised twice a year, once in January and again in July.
The last time the DA was hiked was in 2020. A 4% hike was announced, following which central government employees are entitled to get 21% DA. But the increment was not implemented, and the rate was not revised in 2020 and 2021.
Central government employees were expecting their DA dues from July after a government order claiming the same surfaced on social media. But the ministry later dismissed this order as fake news.