DA and DR for central govt employees hiked to 28%

Union minister Anurag Thakur has declared that Dearness Allowance (DA) and Dearness Relief (DR) benefits for Indian government employees and pensioners have been increased from 17% to 28% with effect from July 1, this year.  This was a much-awaited announcement that comes as a major relief for lakhs of central government employees and pensioners after DA and DR was put on hold last year in the wake of the pandemic.

In an interview, Thakur said, “In view of the unprecedented situation, which arose due to the Covid-19 pandemic, three additional instalments of Dearness Allowance to the central government employees and Dearness Relief to the pensioners, which were due,”

Thakur and few other ministers told a press briefing that the move is expected to cost the government approximately ₹34,400 crores. The decision will impact around 48,34,000 central government employees and 65,26,000 pensioners, the minister said. They also declared that the rate of DA and DR for the period January 1, 2020, to June 30, 2021, will be unchanged at 17%.