The Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will be applicable from July 1, 2021, announced Union Minister Anurag Thakur after a cabinet discussion on the matter.
The meeting, which marks the second meet of the newly reshuffled cabinet, was chaired by prime minister Narendra Modi.
The new Dearness allowance is kept at 28% which is an increase from the existing 17%. This means there will be a 11% increase in the current salary of the Central government employees.
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Here is how to calculate the DA, DR hike?
Shiva Gopal Mishra, Secretary %u2014Staff Side at National Council of JCM told HT Mint that the central government employees need to check their basic salary as per the 7th CPC salary matrix while calculating their salaries pensions post-DA restoration.
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Employees should then check their existing DA which currently stands at 17%. After DA restoration DA will go up to 28% so monthly DA will increase by 11%. This means that the monthly DA allowance of a central government employee will increase by 11% of their basic salary from July 1, 2021, he added.
The same formula will be applied to the calculation of DR benefits post-restoration for pensioners.
The decision to restore DA from July 2021 is likely to benefit about 5 million central government employees and more than 6.5 million pensioners, reports say.
The Centre has said that the arrears in dearness allowance and dearness relief (DR) of central government employees and pensioners will start from July 1, 2021.
The three installments of DA for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, were stalled due to the COVID-19 pandemic.
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