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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