New Delhi | Jagran Business Desk: In a double dose of good news for over 1 crore Central Government workers, the Centre has increased the Dearness Allowance (DA) by 4 per cent, while it has also decided to restore the Dearness Relief (DR). The latest announcement by the government will directly benefit 48 lakh workers and 65 lakh pensioners of the Central government. The hike in DA and restoration of DR will take place in January.  

According to the reports, the government has hiked the dearness allowance by 4 per cent, which will result in an increase in the salary of the central government employees. The latest hike by the government will increase the DA to 21 per cent from the existing 17 per cent. However, an official announcement regarding the date when the hike will be implemented is yet to be received. 

The Union Cabinet had, in March 2020, approved the release of additional instalment of DA to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2020.

The finance ministry had then informed that there will be an increase of 4 per cent over the existing rate of 17 per cent of the Basic Pay/Pension, to compensate for price rise. 

The Union Cabinet had also approved the release of DR (Dearness Relief) to the retired pensioners with effect from 1st January 2020.

This was expected to impact the central government exchequer by nearly Rs 12,510 crore per annum (DA) and about Rs 14,595 crore (DR) in FY 2020-21 (for a period of 14 months from January 2020 to February 2021).

On January 1, Union Minister Jitendra Singh had said that the change will bring a huge relief to the young Central Armed Police Force (CAPF) personnel including Central Reserve Police Force (CRPF), Central Industrial Security Force (CISF), Border Security Force (BSF), among others.

The dearness allowance is given to the central government employees to help them bear with their expenses keeping inflation in mind. It is announced twice a year, the first instalment from January to June and the second one from July to December.

Posted By: Abhinav Gupta