Frozen DA for Central Government Employees restored from July 2021

Hi friends, Union Cabinet Chaired by Prime Minister decided that Frozen DA for Central Government Employees restored from July 2021.

The three installments of Dearness Allowance of Central Government Employees falling due on 1 January 2020, 1 July 2020 and 1 January 2021 have been frozen by the Central Government in the wake of Covid-19 pandemic. During this time of prize hike, Central Government Employees were eagerly waiting for the decision of the Government on DA hike.

DA for Central Government Employees restored from July 2021
DA for Central Government Employees restored from July 2021

Though the decision of the Government has come as a relief for the Central Government Employees and Pensioners, it is made clear that no arrears will be paid. The text of the press release issued by the PIB read as follows:

Cabinet approves increase in Dearness Allowance and Dearness Relief

Posted On: 14 JUL 2021 4:03PM by PIB Delhi

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.

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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