Cabinet approves increase in Dearness Allowance and Dearness Relief

Last updated: 18 July 2021

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The Cabinet Committee has approved an increase in Dearness Allowance for Central Government employees and Dearness Relief for pensioners. Effective from 1st July 2021, the new rate will be 28%, an 11% rise from the previous 17%. This increase incorporates the instalments that were frozen due to the COVID-19 pandemic, specifically those due on 1st January 2020, 1st July 2020, and 1st January 2021. The rate of 17% will remain in effect for the period between 1st January 2020 and 30th June 2021.

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.

Dearness Allowance and Relief Increase Approved to 28

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%

FAQ :

The new rate for Dearness Allowance and Dearness Relief is 28%.

The increase is effective from 1st July 2021.

The previous rate was 17%.

Instalments were frozen due to the unprecedented situation arising from the COVID-19 pandemic.

This increase reflects the additional instalments due on 1st January 2020, 1st July 2020, and 1st January 2021.

The rate of Dearness Allowance/Dearness Relief for the period 1st January 2020 to 30th June 2021 remains at 17%.

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