The hike will be applicable from July 1, 2021 and it will directly benefit around 48.34 lakh central government employees and 65.26 lakh pensioners, Union minister of information and broadcasting Anurag Thakur said.
In view of the Covid-19 pandemic, the Centre had frozen the three additional instalments of the DA and DR which were due from January 1, 2020, July 1, 2020 and January 1, 2021.
The increase in the DA and DR will impose an additional annual burden of Rs 34,401 crore on the exchequer, Thakur said.
“The government has decided to increase DA to central government employees and DR to pensioners with effect from July 1, 2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension,” a release stated.
“Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid,” the official handle of PIB tweeted.
Around 48.34 lakh central government employees, 65.26 lakh pensioners to directly benefit from restoration of… https://t.co/KAysPATBfB
— PIB in Maharashtra 🇮🇳 (@PIBMumbai) 1626258178000
The increase in DA from July 1 will only be effective from that day, which implies that the employees would not get any arrears on non-revision of DA for previous period.
(With inputs from agencies)