Dearness Allowance (DA) elevated from 17% to twenty-eight%: 10 issues to know

The Centre on Wednesday elevated the Dearness Allowance (DA) and Dearness Relief (DR) for central authorities staff and pensioners by 11% from the present charge to convey it to twenty-eight% efficient from 1 July, 2021.

The authorities had frozen all such hikes, which had been due from January 1, 2020, July 1, 2020 and January 1, 2021 as coronavirus had dented its income.

Here are key factors to be aware of:

-The charge at which the Centre gave Dearness Allowance was 17% earlier, which has now been elevated to twenty-eight%.

-The enhance displays the extra instalments arising on 1 January, 2020, 1 July 2021 and 1 January 2021.

-The charge of Dearness Allowance/Dearness Relief for the interval 01.01.2020 to 30.06.2021 shall stay at 17%.

-The enhance within the DA and DR will impose a further annual burden of ₹34,401 crore on the exchequer, Minister of Information and Broadcasting Anurag Thakur advised reporters after the cabinet assembly.

-The transfer, Thakur mentioned, will profit about 48.34 lakh central staff and 65.26 lakh pensioners.

-“The government has decided to increase DA to central government employees and DR to pensioners with effect from July 1, 2021 representing an increase of 11 per cent over the existing rate of 17 per cent of the basic pay/pension,” mentioned a launch.

-“#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. No arrears for the period from 01.01.2020 till 30.06.2021 shall be paid,” the official deal with of PIB tweeted.

-The finance ministry had in April 2020 determined to placed on maintain increment in dearness allowance (DA) for 50 lakh central authorities staff and 61 lakh pensioners until July 2021 because of the COVID-19 disaster.

-“In view of the crisis arising out of Covid-19, it has been decided that the additional instalment of dearness allowance (DA) payable to central government employees and dearness relief (DR) to central government pensioners, due from 1st January, 2020 shall not be paid. Additional instalments of DA & DR from 1 July 2020 & 1 Jan 2021 shall also not be paid,” the Ministry of Finance had mentioned in a memo. However, DA and DR at present charges will proceed to be paid.

Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our e-newsletter.

Never miss a narrative! Stay linked and knowledgeable with Mint.
Download
our App Now!!