The Buyt Desk
The Central Government has finally removed the freeze on dearness allowance and dearness relief from 1st July 2021. It rose by 11% and employees will get an increment of 28% in their salary. This increase is for both central government employees as well as pensioners. The good news doesn’t stop here, the government has announced another hike of 3% in DA and DR allowance. It means that the central government employee could receive DA and DR up to 31% if the latest 3% hike gets approved, which is likely to.
The Union information and broadcasting minister Anurag Singh Thakur has announced that the new rate of DA and DR will come into effect from July 2021, and no arrears will be paid for the period of Jan 1St, 2020 to June 30, 2021.
This move of the government will benefit approximately 50 Lakh permanent central government employees and 65 Lakh pensioners.
Besides the hike in DA and DR, the central government employees will get the following benefits-
1, The central government has announced to increase the House Rent Allowance as well. The HRA tends to increase with the revised DA to over 25 per cent.
2, Announcement for the increase in family pension has also come from the government. The pension limit will increase from Rs. 45,000 to Rs. 1.25 Lakh. The government has taken this decision to support the family members of deceased employees.
3, A few months back, the government had introduced the House Building Advance. This initiative will help government employees get a home loan at a cheaper interest rate.
4, The central government employee can now claim for children education allowance (CEA). Employees who fail to claim allowance due to the COVID-19 pandemic can claim the allowance now, and there is no requirement to produce any official document for the same.
Following the central government move, state governments also announced the hike in DA allowance for their employees and pensioners. Most governments have announced a hike of 11% in DA. Check here the increases in DA in different states for government employees and pensioners.
Uttar Pradesh
The state government has announced an increase of 11 % DA for its 16 lakh government employees and 12 lakh pensioners. The revised DA would be 28 % of the basic salary.
Jammu Kashmir, Jharkhand, Haryana, Rajasthan
These states have announced a hike of 17% in DA, which will bring the DA percentage of basic salary to 28% in totality.
Karnataka
The state government has announced the hike in DA from the existing 11.5%to 21.5%.
Dearness allowance is a component of government employees and pensioners salaries. To help their employees cope with rising inflation, the government revises DA and DR twice a year. The DA of employees varies based on whether they are working in urban, semi-urban or rural sectors.
