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Dearness Allowance increased to 31% with effect from July 1, 2021

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3% hike in dearness allowance for central government employees

The Finance Ministry has said that Dearness Allowance (DA) for central government employees has been increased from 28 per cent to 31 per cent of the basic pay, with effect from July 1, 2021.

This was informed through a notification issued by the Department of Expenditure on October 25, 2021, just a week after the Union Cabinet approved a 3 per cent hike in DA and Dearness Relief (DR) for pensioners.

The notification states that the term “basic pay” means the pay drawn as per the Seventh Pay Commission matrix and does not include any other kind of pay such as special pay.

This hike will be applicable to civilian employees as well as those employed in defense services.

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