Good news for Central Government employees: DA hiked to 189% for THESE employees

The Department of Expenditure, which comes under the Ministry of Finance, had earlier released a memorandum that revised the rates of the Dearness Allowance (DA) to employees of the central government and autonomous bodies. This memorandum along with the changes will apply to employees who draw a salary as per the 5th pay commission and the 6th pay commission. 

The office memorandum further stated that there would be no DA arrears paid to these employees from January 1, 2020, to June 30 2021. The office memo further revealed that the DA for the period of January 1, 2020, to June 30, 2021, for both the 5th pay commission and 6th pay commission will not be changed. During this period, the employees will continue to get 312% under for the 5th pay commission and 164% for the 6th pay commission.

The Department of Expenditure said, “The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing 164 percent to 189 percent of the Basic Pay with effect from 01.07.2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 164 percent.”

The Department further added, “The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing 312 per cent to 356 per cent of the Basic Pay with effect from 01.07.2021. The increase subsumes to the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period of 01.01.2020 till 30.06.2021 shall remain at 312 per cent.”

Notably, the central government has increased the DA as well as the Dearness Relief (DR) for all the central government employees after the 7th pay commission. Earlier, the DA was increased by 17 per cent, but then saw a hike of 11 per cent which basically comes down to 28 per cent now. 

Several states also hiked their state-wise DA for government employees. These states include Uttar Pradesh, Jammu and Kashmir, Assam, Jharkhand, Haryana, Karnataka and Rajasthan.