Dearness Allowance Hike: Finance Ministry Issues Order to Implement

Story Highlights
  • The Union Cabinet approved an 11 percentage point hike in DA and DR for central government employees and pensioners
  • Benefit to more than 48 lakh central government employees and 65 lakh pensioners
  • Separate orders to be issued for Armed Forces personnels and Railway employees

New Delhi: The Finance Ministry on Tuesday issued an order to implement the Union Cabinet’s decision to hike Dearness Allowance for the central government employees to 28 percent from July 1.

Last week, the Union Cabinet had approved an 11 percentage point hike in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners with effect from July 1. This shall benefit more than 48 lakh central government employees and 65 lakh pensioners. 

The Department of Expenditure under the Finance Ministry issued an office memorandum that declares that the DA payable to the central government employees shall be enhanced from the existing 17 percent to 28 percent of the basic pay. These orders will also apply to the civilian employees being paid from the Defence Services Estimates. However, separate orders shall be issued by the respective ministries for Armed Forces personnels and Railway employees.

In April last year, the Finance Ministry had put a hold on increment in DA till June 30, 2021 due to the pandemic. The rate of DA from January 1, 2020 to June 30, 2021 was 17 percent.

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