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HomeSalaries And PensionsCentre to hike another 3% dearness allowance and dearness relief: Report

Centre to hike another 3% dearness allowance and dearness relief: Report

New Delhi: The central government is expected to increase the dearness allowance (DA) and dearness relief (DR) for its employees and pensioners ahead of festive season from the month of July by another three per cent.

If this does happen, then DA will increase to 31%.

Last month, the government increased Dearness Allowance (DA) and Dearness Relief (DR) paid to central government employees and pensioners respectively to 28% from 17% with effect from July 1.

This additional 11% DA was for the period January 2020 to January 2021.

However, the government is yet to announce the DA hike for the period January-June 2021.

The DA was increased by 4% in January 2020, then by 3% in June 2020, and by 4% in January 2021. In view of the COVID-19 pandemic, the Union Government had frozen the three additional instalments of the DA and DR which were due from January 1, 2020, July 1, 2020 and January 1, 2021. These three installments were paid but no arrears of DA was paid.

In addition to DA, the government has also ordered to increase the House Rent Allowance (HRA) of central government employees. HRA has been increased because DA has exceeded 25%, therefore, the Centre has also increased the HRA to 27%.

According to reports, the government may soon release the Dearness Allowance for the period January-June 2021.

As per the AICPI data for January 2021 to June 2021, DA for this period may increase by 3%. If it happens the total DA would increase to 31% from 28% now and take-home salary of government employees may increase.



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