Finance Ministry Issued order for enhancing DA from 1st July 2021 and as a result of that all central government employees will get three months arrears of increased rate of Dearness Allowance from July 2021.
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi
Dated the 25th October 2021
Subject: Revision of Rate of Dearness Allowance (DA) to Central Government Employees due from 01.07.2021
The undersigned is directed to refer to this Ministry’s Office Memorandum No.1/1/2020-E-II (B) dated 20th July, 2021 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 28% to 31% of the Basic Pay with effect from 1st July 2021.
- The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th 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 the Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller and Auditor General of India.