Vikash Sharma

The Union Cabinet’s recent decision to restore the proposal of giving Dearness Allowance (DA) and Dearness Relief (DR) hike with effect from July 1, 2021 has provided much needed relief to lakhs of government employees across the country.

The hike was freezed due to the Covid-19 pandemic last year.

As per the latest announcement, the Dearness Allowance for Central government employees and pensioners was increased from 17 per cent to 28 per cent. The decision of the Centre is expected to cost the government approximately Rs 34,400 crore and impact around 48,34,000 central government employees and 65,26,000 pensioners.

Following the Centre’s decision, a lot of State governments have decided to implement the DA and DR hike.

Here’s detail:

Jammu & Kashmir: On August 2, the Department of Finance, Jammu, and Kashmir by the order of Lieutenant Governor, Manoj Sinha issued an order to implement the revised DA and DR benefits for government employees working in regular pay levels respectively, from 1st July 2021. The DA hike announced for 1st January 2020, 1st July 2020, and 1st January 2021, shall be subsumed in the revised DA. The new DA rate applicable from 1st July 2021 to government employees will be 28% of their monthly basic salary, leading to a rise of 11 per cent from their current DA rate of 17 per cent.

Uttar Pradesh: The Uttar Pradesh government has already asked the State finance department draw up a plan to increase DA, in line with the Centre’s announcement. The move is likely to provide monetary relief to around 16 lakh state government employees and 12 lakh pensioners.

Rajasthan: It has been decided to increase the DA of the State government employees and pensioners from 17 per cent to 28 per cent. This rate will be valid from July 1 onward, said CM Ashok Gehlot. "We have decided to increase dearness allowance of Rajasthan state govt employees and pensioners from 17% to 28%. This will come into effect July 1, 2021, onward. Despite the difficult times due to Covid, state government will spend Rs 4,000 crore annually to support the employees,” tweeted Gehlot on July 14.



Jharkhand : The Jharkhand government on July 27 ordered a hike in dearness allowance for the state government employees by 11 per cent. Earlier, the state government employees used to get 17 per cent DA, which has now spiked to 28 per cent. Haryana: The State Chief Minister ML Khattar, who holds the finance portfolio, said the revision will benefit about 2.85 lakh government employees and 2.62 lakh pensioners. It will put an additional burden of about Rs 210 crore per month on the state exchequer.

The Karnataka government had also announced to hike the DA for the government employees along with other States.