The Dearness Allowance (DA) for Central Government and pensioners employees has been increased from 17% to 28%. This will be applicable from July 1, 2021, said Union Minister Anurag Thakur on Wednesday.

This decision by government will give a financial boost to about 5 million Central Government employees, and more than 6.5 million pensioners, to enhance their spending on their needy things.

At least three additional instalments of DA to Central Government employees and DR to pensioners were due from Januay 1, 2020, July 1, 2020, and January 1, 2021.

The decision was taken at the firts in-person meeting of the Union Cabinet, held in over a year, at Prime Minister Narendra Modi’s official residence on Wednesday.

Anurag Thakur said, “In view of the unprecedented situation, which arose due to the Covid-19 pandemic, three additional instalments of Dearness Allowance to the central government employees and Dearness Relief to the pensioners were due.”

“Now the central government has decided to increase the Dearness Allowance to Central government employees and Dearness Relief to the pensioners with effect from July 1, 2021, to 28%, representing an increase of 11% over the existing rate of 17% of the basic pay,” Anurag Thakur added while announcing the cabinet’s decision.

This move is expected to cost the government approximately Rs 34,400 crore. This decision will impact aroung 48,34,000 central government employees and 65,26,000 pensioners, Anurag Thakur, the minister of sports, youth affairs and minister of information and broadcasting, told a press while briefing the decision.


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