In a major relief to Central Government Employees as well as Pensioners in the wake of COVID and rising prices, the government today announced a hike in the Dearness Allowance for all Central Government employees as well as Dearness Relief to Pensioners. The DA rate has been increased to 28% from the existing 17%. The hike has been pending since last year in the wake of the COVID pandemic lockdown.

The hike in DA will be effected from July 1 2021 and no arrears for the last 6 months of 2021 will be paid, said Union Minister Anurag Thakur in a press release today. The hike of 11% of Basic Pay/Pension will effect over 48 lakh Central Government employees and over 65 lakh pensioners, said the Minister while making the announcement.

While Dearness Allowance is given to existing employees, Central Government Pensioners are compensated by way of Dearness Relief, which is to augment their income to meet the rising cost of living resulting from inflation.