New Delhi | Jagran Business Desk: The Central government is all set to increase the Dearness Allowance (DA) and Dearness Relief (DR) for its employees and pensioners, as per the latest news reports. This comes a few months after the Union Cabinet restored the proposal of giving central government employees the Dearness Allowance and Dearness Relief hike from 17 per cent to 28 per cent with effect from July 1, 2021.

"The Central government has decided to increase the dearness allowance for central government employees and pensioners by 11% to 28%," I&B Minister Anurag Thakur said announcing the restoration and hike on DA.

This time, the rate of DA and DR could be increased by 3 per cent, as a result of which, the central government employees and pensioners could receive DA and DR up to 31 per cent of their basic pay.

In addition to the increase in the DA and DR, here is a look at some of the recently announced benefits for Central government employees.

1. The Centre is also increasing the House Rent Allowance (HRA). It should be noted that the HRA automatically gets increased once DA increases to more than 25 per cent. Furthermore, the employees have already started getting the benefit of increased HRA.

2. The central government also increased the family pension limit from Rs. 45000 to Rs 1.25 lakh. The move aims to better support the family members of deceased employees and to provide enough financial assistance to them.

3. In June 2020, House Building Advance (HBA) was introduced by the Centre in order to provide loans at cheaper interest rates to the government employees intending to construct their houses.

4. Finally, the government also started sending the pension slips via SMS, email, and WhatsApp directly on pensioners’ registered details.

For the unacquainted, Dearness Allowance is paid by the government to its employees as well as a pensioner to offset the impact of inflation. As DA is provided to employees to protect against the price rise in a particular financial year, it is calculated twice every year – in January and July.

Posted By: Sugandha Jha