Ministry of Finance revises the rate for grant of dearness allowance to Work-charged employees

Jul 16, 2021 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Finance Department on July 15, 2021 has issued an Order regarding the revised rates for grant of dearness allowance to Work-charged Employees.

The Dearness Allowance payable to Work-charged Employees has been enhanced from the existing rate of 17% to 28% of the basic pay with effect from July 01, 2021. As per the revised pay structure, basic pay means the pay drawn in the Pay Matrix of the prescribed Levels and shall not include any other type(s) of pay like Special Pay or Personal Pay etc. 

The payment on account of Dearness Allowance involving fraction of 50 paisa and above may be rounded off to the next higher rupee and the fraction of less than 50 paisa may be ignored. DA reflects the additional installments arising on January 01, 2020, July 01, 2020 and January 01, 2021. The rate of Dearness Allowance for the period January 01, 2020 to June 20, 2021 shall remain at 17%. 

Cash payment shall be admissible from July 02, 2021 i.e. salary for the month of July, 2021 payable on August 01, 2021.

[Order No. F. 13(2)FD(Rules)/2017]



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