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Home Business 7th Pay Commission: 28% dearness allowance approved, check rule for DA arrears

7th Pay Commission: 28% dearness allowance approved, check rule for DA arrears


New Delhi: The Union Cabinet on Thursday (July 15) approved the restoration of dearness allowance and dearness relief for central government employees and pensioners. The restoration includes an 11% hike of dearness allowance. With the latest revision, the dearness allowance of the central government employees has been increased to 28% of their basic salary. 

While central government employees and pensioners must be rejoicing the Union Cabinet’s move, there’s also a setback for them. The government has decided not to pay the arrears of the dearness allowance hike. 

Jaideep Bhatnagar, the principal spokesperson of the Indian government and principal director general of Press Information Bureau, said that no arrears for the period from 01.01.2020 till 30.06.2021 shall be paid. 

“#Cabinet approves restoring of three instalments of Dearness Allowance and Dearness Relief with effect from 01.07.2021 representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension,” Bhatnagar said in a tweet. 

Due to the gripping COVID-19 situation in India, the central government had restricted the increase in dearness allowance given to its employees from January 2020. The employees have been receiving DA at the rate of 17% since then. Also Read: Ola, Uber rides become expensive in Mumbai, courtesy fuel price hike

Previously, central government employees had urged that the government should pay the arrears of the dearness allowance in a retrospective manner. However, the government has denied paying any arrears for the last 18 months. Also Read: Sensex jumps 255 points to end at fresh record, Nifty claims 15,900 level

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