On July 20, 2021, the Ministry of Finance has issued a memorandum on revision of Dearness Allowance to the Central Government employees. The dearness allowance has been enhanced from 17% to straight 28% of the basic pay for the employees with effect from July 01, 2021. The rate of the frozen dearness allowance for the period from January 01, 2020 to June 30, 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 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
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.