Good news for the central govt employees, as the government planning to increase the Dearness Allowance once again (DA). The central government had already enacted a 28 percent pay increase for central government employees. However, according to new reports, the DA will be increased by another 31%. The DA, which had previously been set at 17 percent, was raised to 28 percent and was slated to effect in July 2021. Prior to this, there were early indications that the administration planned to hike the DA by another 3%. This increase means that government employees and pensioners will not only see an increase in their DA but also their overall salary.

The government previously increased the Dearness Allowance by 4% in January 2020, followed by another 3% rise in June of the same year. In January of this year, the DA received another 4% raise, bringing its total to 17 percent. It was at 28 percent after the 11 percent increase. It should be noted that the DA raise for June 2021 has not yet been finalized, however, the AICPI June data suggest a 3% increase. It's also worth noting that between January 1, 2020, and June 30, 2021, the government will not pay any DA arrears.

With the changes to the DA rates, there will be nearly 48 lakh beneficiaries who are central government employees and around 65 lakh pensioners across India. Earlier, in a bid to give some measure of relief to its employees, the Centre hiked the Variable Dearness Allowance (VDA), which put it in a range of Rs 105 to Rs 210 per month. The rates had been effective from April 2021. It was intended to benefit around 1.5 crore workers at the time.

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