New Delhi: Just before the festival of Diwali Dhantares, the Central Government has given good news to the Central Employees. Dearness Allowance (DA) for Central employees has been increased from 28% to 31% of basic pay, which will be effective from July 1, 2021. The Ministry of Finance has given this information. The Department of Expenditure under the Ministry of Finance said that 'basic pay' means salary received as per the 7th Pay Commission and does not include any other special pay or allowance.
Rs 9488.70 crore will be burdened on treasury
According to the Department of Expenditure, dearness allowance payable to central government employees will be increased from the current 28% to 31% of basic pay from July 1, 2021. The government's treasury will be burdened with a total burden of Rs 9,488.70 crore due to Dearness Allowance and Dearness Relief. The increase will also benefit civilian employees paid from defence services, while the Defence and Railway Ministries will issue separate orders in respect of armed forces personnel and railway employees.
Lakhs of employees and pensioners will get benefit
The decision will benefit about 47.14 lakh central government employees and 68.62 lakh pensioners. This year in July, the DA rate was increased from 17 percent to 28%. Now, with an increase of 3 percent, the DA rate will go up to 31%. The Union Cabinet had last week approved an increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners from the current 28% to 3%.