In what comes as a good news for 50 lakh employees and 61 lakh pensioners of the Central government, reports are indicating that Centre may well decide to hike Dearness Allowance (DA) and Dearness Relief (DR) and that too at the rate of 28 percent rate of inflation. DA is being given at the old rate of 17 percent rate. Source: Reuters
As per the reports, the Centre may increase DA by another 4 percent. If the reports come true then it means that the DA of employees of Central government will increase from 17 percent to 21 percent. It is to be noted that there is no official announcement made by Centre in this matter so far.
‘Benefits from this month”
The Department of Expenditure had then said in an official memorandum that due to COVID-19 crisis, the Centre had decided that additional instalment of DA payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid. The memo added that additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid
Earlier in April 2020, it was decided by Union Finance Ministry to freeze the dearness allowance (DA) for 50 lakh central government employees and dearness relief (DR) for 61 lakh pensioners till July 2021 due to the coronavirus pandemic.