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Employees DA: Gov Lifts Ban on Dearness Allowance

Employees DA: Gov Lifts Ban on Dearness Allowance

Good news has come for the central employees. The moratorium on dearness allowance has been lifted today. Along with this, it has also been decided to increase the dearness allowance by 11% by including three installments. This decision was taken in the cabinet meeting chaired by Prime Minister Narendra Modi today. Last year there was a ban at the beginning of Corona. There was a ban on three installments of dearness allowance. It has been decided to remove this restriction.

According to today’s decision, the moratorium on all three installments effective from 1 January 2020, 1 July 2020 and 1 January 2021 has been removed. After the moratorium is lifted, there will be a total increase of 11 percent in all the three installments. That is, the rate of dearness allowance will increase from the present 17 percent to 28 percent. Central employees and pensioners will benefit from this decision of the government.

Actually, since the start of Corona, there was a ban on the increase of dearness allowance. In the month of April, after the start of the Corona epidemic last year, the Union Cabinet had banned the release of two installments of dearness allowance to government employees. Since the installment of Dearness Allowance is released every six months. Once from January 1 while the second time from July 1.

In fact, due to rising inflation, the prices of goods go up and start reducing the purchasing power of the money available with the people. To counter this, the government gives dearness allowance to the employees so that people can face the increasing expenses and can buy the things they need despite the increase in the price.

For the calculation of dearness allowance i.e. DA, the government considers the inflation rate based on the All India Consumer Price Index as the basis and based on this, the DA of government employees is revised every two years.

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