Government revised the rates of Dearness Allowance to Central Government employees

Jul 22, 2021 | by Avantis RegTech Legal Research Team

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Labour Compliance

The Ministry of Finance on July 20, 2021 has issued a memo on revision of Dearness Allowance to the Central Government employees. The Government has evidently enhanced the allowance from 17% to straight 28% of the basic pay for the employees.

The rate of the frozen dearness allowance for the period from January 01, 2020 to June 30, 2021 shall remain at 17%.

The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.

These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

The hike in dearness allowance will be in effect from July 01, 2021.




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