The Dearness Allowance (DA) for Central government employees and pensioners has been increased from 17 to 28 per cent. This will be applicable from July 1, 2021, according to Union Minister Anurag Thakur on Wednesday. 

This will give a financial boost to about 50 lakh Central government employees and more than 65 lakh pensioners to enhance their spending ahead of the forthcoming festival season. 

The decision was taken at the first, in-person meeting of the Union Cabinet, held in over a year, at Prime Minister Narendra Modi’s official residence on Wednesday. The meeting comes ahead of the Monsoon session of Parliament. 

At present, Central government employees get DA of 17 per cent. This level of DA became effective from July 2019 with further revision due from January 2020. But this, along with subsequent two other revisions, were suspended due to COVID-19. 

“The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance and Dearness Relief (DR) for the period 01.01.2020 to 30.06.2021 shall remain at 17 per cent,” said the government in a statement. 

Last year, the Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. This was to be effective from January 1, 2020. 

However, in wake of the pandemic, the disbursement of DA at increased rates was suspended, along with DR for the pensioners.