Union Cabinet considers restoration of DA and DR for central govt employees

Reportedly, the Central Government may restore the three frozen instalments and announce a hike in the DA and DR with effect from July 1, 2021.

The Union Cabinet is considering restoration of Dearness Allowance and Dearness Relief for the central government employees and pensioners that was frozen last year on April 23, with effect from January 1, 2020 till June 2021, citing Covid-19 pandemic. Reportedly, the Central Government may restore the three frozen instalments and announce a hike in the DA and DR with effect from July 1, 2021. According to The Hindu Business Line, the Joint Council Machinery for Central Government Employees (JCM) that is headed by the Cabinet Secretary has agreed for a Dearness Allowance (DA)/Dearness Relief (DR) hike and now the decision rests on the Union Cabinet. The Finance Ministry had said last year that whenever the decision to release the future instalment of DA and DR dues would be announced, they would be restored prospectively. However, the memorandum had said that no arrears would be paid for the period from January 1, 2020 till June 30, 2021.