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Vikash Sharma

Bhubaneswar: The Centre on Tuesday announced that the three pending instalment of Dearness Allowance (DA) of Central government employees and pensioners will be restored prospectively which is due from July this year.

In a written reply in the Rajya Sabha today, Minister of State for Finance, Anurag Thakur said, as and when the decision to release the future instalments of DA due from 1st July this year is taken, the rate of DA as effective from January last year to January 2021 will be restored prospectively.

Thakur further said that the rates will be subsumed in the cumulative revised rates.

It is pertinent to mention here that the pending DA and DR instalments (January 1, 2020, July 1, 2020 and January 1, 2021) will come into effect from July 2021.  However, it were earlier put on hold in view of the Covid-19 pandemic situation in 2020.

The Central government employees  are presently getting DA of 17%. The Union Cabinet had approved a 4% increase in DA for government employees and pensioners to 21% last year.

Though it was to be effective from January 1, 2021, the finance ministry decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.

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