Centre raises Dearness Allowance to 28% for Central Govt staffs, pensioners

New Delhi: The Union Cabinet is reported to have categorically agreed to increase the Dearness Allowance (DA) and Dearness Relief (DR) of all Central government employees and pensioners with the effect from July 1, 2020.

Dearness Allowance is increased to 28 per cent from the existing 17 per cent and will be disbursed from September this year, reports said. The decision will be cleared in a meeting of the Union Cabinet scheduled for this afternoon.

The increase in the DA for the Central government employees caused a debate among many who questioned the need for a hike at a time when the country is reeling under the financial crisis due to the COVID pandemic.

The proposal to hike the DA and DR was said to have been cleared during a meeting held on June 26 between the Finance Ministry and officials of the Department of Personnel and Training.

The Joint Council Machinery for Central Government Employees, which included representatives of recognised Central Government employees union and headed by the Cabinet Secretary, had met last week to clear the proposal, apart from seeking clearance of pending dues.

The DA and DR installments are due for four periods namely January 1, 2020, July 1, 2020, January 1, 2021, and July 1, 2021.

On April 23, 2020, the Centre had frozen the payment of DA and DR with effect from January 1, 2020, till July 2021, aiming at saving funds to combat the medical emergency in the wake of increasing COVID cases in the country.