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Govt begins DA hike process for central employees and pensioners

New Delhi: The Union government has started the process of increasing of the Dearness Allowance (DA) and Dearness Relief (DR) of the central government employees and pensioners.

Representative image

Central government servants’ (CGS’) representative body National Council of JCM, officials from the Department of Personnel & Training (DoPT) and Ministry of Finance are going to meet on 26th June 2021.

The agenda of the meeting is to pay DA dues to the central government employees and DR to the pensioners.

Shiva Gopal Mishra, Secretary — Staff Side at National Council of JCM said, “The meeting will revolve around the DA and DR benefits of the central government employees and central government pensioners. In this meeting we will discuss about the DA arrears and DR arrears payment due for 1.1.2020, 1.7.2020 and 1.1.2021 to the central government employees and central government pensioners respectively.”

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 frozen in view of the COVID-19 pandemic.

Earlier, Minister of State, Finance, Anurag Thakur in a written reply to Rajya Sabha on March 9 had said three pending DA instalments to central government employees will be “subsumed in the cumulative revised rates of DA effective from 1 July 2021.

“As and when the decision to release the future installments of Dearness Allowance due from July 1, 2021 is taken, the rates of DA as effective from January 1 and July 1, 2020 and January 1, 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from July 1, 2021.” said Thakur in the reply.

At present all central government employees and pensioners are getting 17% DA which may now jump to 28% including 3% DA hike effective from January 1, 2020, 4% DA hike effective from July 1, 2020, and 4% DA hike from January 1, 2021.

Last year, the Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. This was to be effective from January 1, 2020. However, in wake of the pandemic the disbursement of DA at increased rates was suspended along with DR for the pensioners.

With the decision now to restore DA benefits from July 1, central government employees and pensioners could hope to get a fat increase in the allowance that will also cover for the possible increases in three previous due cycles.

However, any increase in DA from July 1 will only be effective from that day, meaning the employees would not get any arrears on non-revision of DA for previous period.

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