Today the Union Cabinet Committee approves increase in Dearness Allowance and Dearness Relief from 17% to 28% with effect from 1st July 2021
17% + 11% = 28% [1st July 2021]
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Dearness Allowance (DA) Announcement for CG Employees and Pensioners
Cabinet approves increase in Dearness Allowance and Dearness Relief
The Cabinet Committee chaired by the Hon’ble Prime Minister Shri Narendra Modi today has approved increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension.
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In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen.
Now, the Government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%.
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What about July DA?
17 + 11 = 28%.
The effect of notional DA restored w.e.f. 1.1.2020 should be physically made applicable on superannuation benefits for officials who retired w.e.f.1.1.2020 till 30.6.2021 otherwise it is will a additional permanent loss to such employees who retired during that period and they will be unduly made to suffer additional loss apart from loss they suffered along with serving people. JCM should get a clarification order consequent to release of the old DAs.