7th Pay Commission: The Central Government announced to increase the Dearness Allowance, DA and Dearness Relief (DR) for central employees and pensioners from the current rate to 28 percent with effect from July 1, 2021. This step will benefit about 48.34 lakh central government employees and 65.26 lakh pensioners. Now these states have increased the Dearness Allowance.
Karnataka
The Karnataka government has ordered the release of additional installment of Dearness Allowance, which it had frozen due to Kovid. According to media reports, the government has increased the dearness allowance for the period from January 2020 to June 2021 from the current rate of 11.25 per cent to 21.5%.
Jammu and Kashmir and Jharkhand
The Jammu and Kashmir government has increased the Dearness Allowance (DA) for government employees and pensioners from 17 per cent to 28 per cent. The increased dearness allowance will be applicable from July 1. A few days ago, the government of Jharkhand also increased the DA from 17 percent to 28 percent. Earlier, the central government had announced to increase DA for central employees and pensioners.
Rajasthan and Uttar Pradesh
The Ashok Gehlot government of Rajasthan also announced to increase dearness allowance, giving relief to its employees. The Rajasthan government has decided to increase the dearness allowance of state government employees and pensioners from 17 to 28 percent. The Uttar Pradesh government has also announced to increase dearness allowance.
The Central Government announced to increase the dearness allowance and dearness relief for central employees and pensioners from the current rate to 28 percent with effect from July 1, 2021. Now the rate of DA will be increased from 17 percent to 28 percent. It will be implemented from July 1, 2021. The hike in DA and DR will put an additional burden of Rs 34,401 crore on the exchequer.
Earlier DA was being available at the rate of 17 percent, which will now increase by 11 percent i.e. at the rate of 28 percent. The central government had increased DA by 4 per cent for January 2020, 3 per cent in 2020 and then by 4 per cent in January 2021, but employees were getting DA at the old rate of 17 per cent.
