Govt Increases Dearness Allowance & Dearness Relief

Thursday, July 15, 2021

/ by mansuralisaha


The News Cover: Dearness Allowance (DA) is paid by the government to its employees to compensate them for the rising cost of living due to inflation. Similarly, pensioners are paid Dearness Relief (DR). So there is Dearness Allowance for employees & Dearness Relief for pensioners. DA and DR which had been due on 1 January 2020, 1 July 2020, and 1 January 2021, were frozen due to the Coronavirus pandemic induced financial constraints. 

After the Cabinet meeting on 15th 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. Employees will not get any arrears from the previous period. The new percentage will be applicable from 1st July 2021. 

The move will benefit 48 lakh central government employees, and 65 lakh pensioners." The increase in percentage will impose an additional burden of Rs 43, 401 crore on the government. The decision was made to give a financial boost during the economic crunch to employees and pensioners ahead of the forthcoming festival season.

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