DA and DR hikes from 17% to 28% for central govt employees, pensioners w.e.f July 1

The Centre restored the DA and DR that had been frozen last year citing Covid-19 pandemic.

The Central Government on Wednesday announced a hike in the Dearness Allowance (DA) and the Dearness Relief (DR) for central government employees and pensioners respectively from 17% to 28% which will come into effect from July 1, 2021. However, the rate of DA and DR will remain at 17% for the period January 1, 2020 to June 30, 2021. The Centre lifted an 18-month suspension announcing restoration of the DA and DR that had been frozen in April 2020 with effect from January 1, 2020 citing Covid-19 pandemic in order to use the money for vaccination against the disease.

DA and DR is paid by the government to the central government employees and pensioners respectively to reduce their burden of rising cost of living due to inflation. However, reportedly a large section was not happy with the announcement as some who had retired during the last few months would not get leave encashment and pension benefits while others argued that the increase for the last six months was inadequate as retail inflation had skyrocketed including prices of edible oil, auto fuel and other perishable items.