DA hike: Finance ministry issues order to implement Cabinet decision on DA, DR hike from July 1

Final week, the Union Cabinet had authorised an 11 proportion level hike in Dearness Allowance (DA) and Dearness Reduction (DR) for central authorities staff and pensioners with impact from July 1, benefitting greater than 48 lakh central authorities staff, and 65 lakh pensioners.

With this, the brand new DA charge can be 28 per cent, up from 17 per cent.

In an workplace memorandum, the Department of Expenditure underneath the Finance Ministry stated the DA payable to central authorities staff shall be enhanced from the prevailing charge of 17 per cent to twenty-eight per cent of primary pay. The rise subsumes the extra instalments arising on January 1, 2020; July 1, 2020, and January 1, 2021.

“These orders shall additionally apply to the civilian staff paid from the Defence Companies Estimates,” it stated, including for Armed Forces personnel and Railway staff separate orders can be issued by the respective ministries.

In April final yr, the Finance Ministry had placed on maintain an increment in dearness allowance (DA) until June 30, 2021, as a result of COVID-19 pandemic. The speed of DA from January 1, 2020, to June 30, 2021, was 17 per cent.