Finance Ministry Issues Order To Implement Cabinet Decision To Hike Dearness Allowance To 28% From July 1

The Finance Ministry on Tuesday issued an order to implement the Cabinet choice to hike Dearness Allowance for central authorities workers to twenty-eight per cent from July 1. Last week, the Union Cabinet had accepted an 11 share level hike in Dearness Allowance (DA) and Dearness Relief (DR) for central authorities workers and pensioners with impact from July 1, benefitting greater than 48 lakh central authorities workers, and 65 lakh pensioners.

With this, the brand new DA fee will probably be 28 per cent, up from 17 per cent. In an workplace memorandum, the Department of Expenditure below the Finance Ministry stated the DA payable to central authorities workers shall be enhanced from the prevailing fee of 17 per cent to twenty-eight per cent of primary pay.

The enhance subsumes the extra instalments arising on January 1, 2020; July 1, 2020, and January 1, 2021. "These orders shall also apply to the civilian employees paid from the Defence Services Estimates," it stated, including for Armed Forces personnel and Railway workers separate orders will probably be issued by the respective ministries.

In April final 12 months, the Finance Ministry had placed on maintain an increment in dearness allowance (DA) until June 30, 2021, because of the COVID-19 pandemic. The fee of DA from January 1, 2020, to June 30, 2021, was 17 per cent.