Good news for central govt employees: Govt approves a 28% hike in pension allowance
The Cabinet, chaired by Hon’ble Prime Minister Shri Narendra Modi, today approved a 28 per cent hike in the pension allowance for central government employees and the pension relief for pensioners from July 1, 2021. This represents an 11 per cent growth in the base rate / pension at the current rate of 17 per cent.
In view of the fact that three additional instalments, namely Duty Relief (DA) for Central Government Employees as well as Dear Relief (DR) for Pensioners, have not been heard of before the Kovid-19 mammoth; these three additional instalments are due from January 1, 2020, July 1, 2020 and January 1, 2021, respectively.
The government has decided to increase the allowance for Dearness Allowance to Central Government Employees as well as 28% for Dearness Relief for Pensioners with effect from July 1, 2021.
This represents an 11 per cent increase in the current rate of 17 per cent of the base wage / pension. This growth also reflects the additional instalments due for January 1, 2020, July 1, 2020 and January 1, 2021. From January 1, 2020 to June 30, 2021, the rate of Debt Relief / Dearness Relief will be as high as 17 per cent.