Categories: Economy

Cabinet approves increase in DA and Dearness Relief from 17% to 28%

The Union Cabinet headed by Prime Minister Narendra Modi has approved an increase in the Dearness Allowance to Central Government employees and Dearness Relief to pensioners to 28 per cent. This hike represents an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension.

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Important facts:

The increased DA and DR rates will be effective from July 1, 2021.
It must be noted that both Dearness allowance and dearness relief was put on hold from January 2020, in the wake of the Covid-19 pandemic.
As a result, the DA and DR instalments are due for four periods including January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021.
However, the rate of DA/DR for the period between January 2020 to June 2021 shall remain at 17%.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.