Dearness allowance was hiked by 3% on Thursday with effect from July 1, 2021, which will benefit over 47 lakh central government employees. The increase of 3 per cent is over and above the existing rate of 28 per cent of basic pay/pension.
The move will cost the exchequer Rs 9,488.70 crore annually.
The Center had temporarily withheld dearness allowance and dearness relief benefits for central government employees and pensioners in 2020 due to shortfall in revenue collection after the Covid-19 pandemic ravaged the economy.
The restoration of DA and DR in July benefitted lakhs of central government employees and pensioners.
After the previous hike was approved, the DA of central government employees increased to 28 per cent. Therefore, now DA will increase to 31 per cent.
Earlier in September, the Department of Expenditure under the Finance Ministry had issued a memorandum stating that retired central government employees would get cash payment and gratuity.
Employees and pensioners just need to find out the percentage equal to their basic pay to get the DA amount. For example, if an employee is paid Rs 20,000 per month, then 3 per cent of that would be Rs 600 or more. Hence, the said employee will get an additional Rs 600 on top of the basic salary of Rs 20,000. Now, assuming the increase to be 31 per cent, 31 per cent of Rs 20,000 would be Rs 6,200, which the employee would get.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire.
.