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The Centre increased the Dearness Allowance (DA) as well as the Dearness Relief (DR) for central government employees, effective from July. The DA was hiked to 28 per cent from 17 per cent. Nearly 48 lakh central government employees and 65 lakh pensioners will be benefitted by the latest move. Since the Centre made this announcement, a few states across India have also made announcements that the DA would be increased.
Anurag Singh Thakur, Union information and broadcasting minister, had said in a statement that the new rates of DA and DR will come into effect from July 2021 and that it will impose an annual burden of Rs 34,401 crore on the central exchequer. It must be noted that that government will not pay any dearness allowance arrears for the period between January 1, 2020 to June 30, 2021.
Dearness Allowance is a component of salary of government employees and pensioners. To cope up with the rising inflation, the central government revises DA and DR benefits twice every year – in January and July. DA varies from employee to employee based on whether they work in urban sector, semi-urban sector or the rural sector.
Here are the states that have announced an increase in the DA for government employees and the parameters by which it is increased.
1) Uttar Pradesh
The Uttar Pradesh state government announced that the dearness allowance would be increased to 28 per cent as per the Centre’s mandate. This change will benefit around 16 lakh government employees and 12 lakh pensioners according to reports.
2) Jammu and Kashmir
The government of Jammu and Kashmir hiked the Dearness Allowance for government employees and pensioners by 17 per cent and brought it up to 28 per cent. This change was made effective from July 1, 2021.
3) Jharkhand
The Jharkhand state government also raised the Dearness Allowance for its pensioners and government employees by 17 per cent. Effective from July 1, the DA will be at 28 per cent on top of the base salary.
4) Haryana
The Haryana government issued an increase of the Dearness Allowance which took effect from July 1, 2021. The chief minister of Haryana, Manohar Lal Khattar, recently announced that the Dearness Allowance of government employees will increase by 17 per cent, making the DA stand at 28 per cent. This includes the additional instalments arising on January 1, 2020, July 1, 2020 and January 1, 2021.
5) Karnataka
The state government of Karnataka announced that it will be releasing additional instalments of Dearness Allowance. This will be applicable for the period of January 2020 to June 2021 from the existing 11.25 per cent to 21.5 per cent. The state government had previously frozen this in light of the Covid-19 pandemic.
6) Rajasthan
The Rajasthan government also announced that the government employees will be seeing a 17 per cent increase in their Dearness Allowance. This will see the DA hit the 28 per cent mark.
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