The Finance Ministry issued an order to carry out the Cabinet resolution to increase the Dearness Allowance for central government employees to 28% from July 1. Last Monday, the Union Cabinet authorised an 11 percentage point increase in Dearness Allowance (DA) and Dearness Relief (DR). As a result, the new DA rate will be 28%, up from 17%.
The dearness allowance (DA) payable to central government employees would be increased from the current rate of 17% to 28% of basic salary. Due to the COVID-19 epidemic, the Finance Ministry postponed an increase in DA until June 30, 2021, in April of last year.