Media is again abuzz on the reports that the union cabinet will take the decision on de-freezing the dearness allowance (DA) and dearness relief (DR) today. Unconfirmed reports says that the Union Cabinet will be expanded today and the cabinet meeting called is likely to take important decisions. If not tomorrow, cabinet meeting is going to be held again next Wednesday, which can take up the decision on the DA / DR of the central government staff.
Earlier it was reported that the central government might restore Dearness Allowance from September. Shiva Gopal Mishra, Secretary, Staff Side at National Council of JCM in a briefing after the Staff Side meeting of the National Council JCM held on 25/06/2021 had told that the Cabinet Secretary stated that the Department of Expenditure would process the matter for getting the Cabinet Approval for restoring the frozen DA / DR from 1/7/2021. (Read: DA/DR restoration to be expedited, no decision on arrears at NC JCM meeting)
Currently the dearness allowance is frozen at 17 per cent, which has been effective from July 2019. The central government stalled the implementation of the DA hike in the wake of Covid-19 pandemic last year. Since then, the central government employees are getting their DA at an earlier rate. Three increments are due as of now including the hike of January 2020, July 2020 and January 2021. The DA hike from July 2021 will be announced around August - September. (Read: DA from July 2021 expected to be 31%)