Finance Ministry issues order for revised rates of DA, DR hike from 1 July

July 20: The Ministry of Finance, Government of India has issued an order on 20 July, 2021 regarding revised rates of Dearness Allowance (DA) to Central Government employees with effect from 1 July, 2021. The Dearness Allowance of Central Government employees due from 01.01.2020, 01.07.2020 and 01.01.2021, were frozen after the outbreak of Covid-19. But now, the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 17% to 28% of the basic pay with effect from 1st July, 2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.202C and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 17%.

• The term ‘basic pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per Pi CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
• The Dearness Allowance will 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 Dearness Allowance 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 Ministry of Railways, respectively.
• In their application to the persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller & Auditor General of India.