More than 1.2 crore central employees and pensioners have been waiting for the restoration of increased Dearness Allowance (DA) and Dearness Relief (DR) for a long time. However, the wait is finally over, as the Central government has reportedly decided to restore the increase in the allowance in a cabinet meeting led by Prime Minister Narendra Modi on Wednesday (July 14).
Central employees currently get a dearness allowance at the rate of 17 per cent. However, employees will now get a DA at 28 per cent of their basic pay, according to a report.
The central government had earlier increased the dearness allowance by 4 per cent in January 2020, 3 per cent in June 2020 and 4 per cent in January 2021. According to the calculations, the total hike will become 28 per cent (17+4 +3+4).
Apart from central government employees, even central government pensioners and those receiving family pension from the central government will be benefited from the latest decision to hike DA. Therefore, the decision will also hike pensions received.
Dearness Allowance/Dearness Relief is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from January 1 and July 1.
Previously, DA was hiked by the Union Government in October 2019 by 5 per cent. Prior to this, the dearness allowance was at 12%.
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