Dearness Allowance Effective From July 1, 2021 Hiked To 31%

Finance Ministry has said that dearness allowance (DA) for central government employees has been hiked to 31 per cent of the basic pay from 28 per cent, which would be effective 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 had cleared a 3 per cent hike in DA and dearness relief (DR) for pensioners.

The notification said that the term “basic pay” means the pay drawn as per the 7th pay commission matrix and does not include any other type of pay like special pay.

The hike will be applicable for civilian employees as well as for those employed in defence services.