Finance Ministry orders implementation of DA, DR profit from 1st July
The Ministry of Finance has issued order to implement cabinet resolution to implement the revised Dearness Allowance (DA) and Dearness Relief (DR) profit for the central authorities workers and pensioners respectively from 1st July 2021. The resolution has come as massive aid to round 1.12 crore central authorities workers and pensioners, whose DA and DR profit was frozen from 1st January 2020 to 30 June 2021. The Department of Expenditure on the Ministry of Finance issued an Office Memorandum (OM) on this regard on Tuesday i.e. twentieth July 2021. The OM stated that the DA hike introduced for 1st January 2020 (4%), 1st July 2020 (3%) and 1st January 2021 (4%) shall be subsumed within the revised DA. So, the brand new DA price relevant from 1st July 2021 to central authorities workers shall be 28 per cent of their month-to-month fundamental wage — resulting in rise of 11 per cent from their present DA price of 17 per cent.
Issuing order to implement revised charges of DA to central authorities workers the Ministry of Finance’s OM stated, “The undersigned is directed to refer to the Ministry’s Office Memorandum No. 1/1/2020-E-II (B) dated 23.04.2020 vide which instalments of Dearness Allowance to Central Government employees due from 01.01.2020, 01.07.2020 and 01.01.2021 , were frozen and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 17% top 28% of the basic pay with effect from 1st July 2021.” The Om issued by the Department of Expenditure on the Ministry of Finance additional added that the rise subsumes the extra instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021.
However, the Finance Ministry’s order made it clear that DA for the interval of 1st January 2020 to thirtieth June 2021 will stay 17 per cent which means no DA and DR arrears shall be given to the central authorities workers and pensioners.
These orders shall additionally apply to the civilian workers paid from the Defence Services Estimates. But, for Armed Forces personnel and Railway workers, a separate order shall be issued by the Ministry of Defense and Ministry of Railways.
In April 2020, the Ministry of Finance had put DA hike on maintain until thirtieth June 2021, because of the COVID-19 pandemic. The price of DA from 1st January 2020 to thirtieth June 2021 was 17 per cent.
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