New Delhi | Jagran Business Desk: The Dearness Allowance (DA) and Dearness Relief (DR) for employees of the central government have been increased by the Centre, with effect from July 2021.

In a statement, Union Minister of Information and Broadcasting Anurag Thakur had said that that the new rates of DA and DR will be implemented from July 2021. Furthermore, the government will not pay any dearness allowance arrears for the period between January 1, 2020 to June 30, 2021.

The move, wherein the DA was hiked to 28 per cent from 17 per cent, will benefit approximately 48 lakh central government employees and 65 lakh pensioners. Following the announcement by the Center, a few state governments have also made announcements that the DA would be increased.

The states that announced the DA increase include Uttar Pradesh, Jammu and Kashmir, Jharkhand, Haryana, Karnata, and Rajasthan.

The UP government announced that the DA will be increased to 28 per cent, which will benefit 16 lakh government employees and 12 lakh pensioners. Similar to Uttar Pradesh, the state governments of Jammu and Kashmir, Jharkhand, Haryana, and Rajasthan, also announced the DA to be increased to 28 per cent. Meanwhile, the Karnataka state government announced that it will be releasing installments of DA allowance, which will be applicable from Jan 2020-June 2021 from 11.25 per cent to 21.5 per cent.

Dearness Allowance is the cost of living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same. It is aimed at hedging the impact of inflation.

Meanwhile, Central employees received HRA based on the city they reside in. The cities have been divided into three categories, which have been named X, Y, Z. Now the central employee residing in X city has been given 27 per cent HRA, 18 per cent for Y, and 9 per cent for Z. Unlike DA, the HRA is available only to those employees who are in service. Retired employees are not given the benefit of HRA.

Posted By: Sugandha Jha