The Dearness Allowance (DA) payable to Central government employees will be enhanced from the existing rate of 17 per cent to 28 per cent of basic pay with effect from July 1, 2021.
The Department of Expenditure under the Finance Ministry said in a circular that the increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01 2021. The rate of DA for the period from 01.01.2020 till 30.06.2021 shall remain at 17 per cent.
The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per the 7th CPC recommendations accepted by the government, but does not include any other type of pay like special pay etc.
The DA wiIl continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
The payment on account of DA involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of armed forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.