Tuesday 20 July 2021
Wednesday 14 July 2021
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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(Release ID: 1735374)Tuesday 29 June 2021
Restoration of frozen DA / DR from 01.07.2021 – Process would be initiated for getting the Cabinet Approval: Cabinet Secretary
It is noted from the Minutes of of NJCM held on 26/06/202, the Cabinet Sectretary is reported to have stated that the Department of Expenditure would process the matter for getting the Cabinet Approval for restoration of frozen DA/DR from 01/07/2021
All Central Government employees and pensioners are anxiously waiting for the outcome of this meeting since the DA due to employees and DR due to the Pensioners are freezed from 1/1/2020 for 18 months. The Central Government employees and pensioners have contributed more than Rs. 40,000/ Crores by not receiving the DA/DR due for them. Now since the economy is getting revived according to the Government itself, Central Government employees and pensioners may be given DA and DR retrospectively with arrears. Hope Government will take a positive decision in this regard.
An agenda regarding withdrawal of order of DA/DR freeze was included for discussion in meeting. The decision of issue of order regarding restoration of enhanced DA/DR as per All India CPI(IW) Index not seen. Cabinet Secretary stated that Department of Expenditure would process the matter for getting the Cabinet Approval for restoring the frozen DA / DR from 1/7/2021.
The Staff Side demanded that they are eligible for arrears from 1/1/2020 and the mode of payment can be discussed separately with the Staff Side. The Staff Side also demanded to extend the benefit to those employees who retired / expired between 1/1/2020 and 30/06/2021.
As per details of discussion stated above it is evident that the waiting for withdrawal of freezing of DA/DR doesn’t end and subject to approval of Cabinet. It is also clear that process to get approval is also pending.
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