Dearness Allowance Hike for State Government Employees

| | , ,

Coronavirus Pandemic has posed a grave challenge to the Government as well as the economy. Due to the COVID-19 Crisis, the Government has already started planning different methods to overcome this situation. One of these methods is to introduce Dearness Allowance hike for pensioners. 

In March 2020, the Government announced that the hike would be by 4%. But according to the current office memorandum, pensioners will now receive DA @ 17%.


1. What decision has the Government taken regarding DA?  

As per the office memorandum:-

  • The Government shall not pay the additional installment of Dearness Allowance (DA) payable to Central Government employees and Dearness Relief (DR) to Central Government pensioners due from 1st January 2020. 
  • The additional installment of DA and DR due from 1st July 2020 is also not payable. 
  • However, DR & DA at current rates shall continue to be paid.


2. Some States where DA Hike Implemented 

Following the decision, many states have started the hike in DA. 

  • The Uttar Pradesh Government has ordered Dearness Allowance hike suspension, which will impact over 16 lakh pensioners. 
  • The Tamil Nadu government has announced Dearness Allowance hike freeze till July 2021. 
  • Many states such as Maharashtra, Punjab, Rajasthan are planning such cost-cutting methods. The Central Government has already implemented this decision, which has affected the 1000s of teachers and other government employees.


3. What is the Dearness Allowance?

The Dearness Allowance is a calculation on inflation and allowance paid to government employees, public sector employees, and pensioners.

The Government of India decides twice a year how much Dearness Allowance should hike to help the pensioners.


4. EPF Contribution by the Government 

Recently, the Government has also announced to pay the PF contribution rate of both Employer and Employees. Therefore, making EPF registration more crucial than ever. The Employee Provident Fund or PF is a retirement saving scheme provided by the Government for all salaried employees in India, on which fixed interest is regularly paid. Benefits such as Emergency Needs, Risk Coverage, Long-term goals, etc. 

Know about the decision regarding the EPF Contribution.


Know Which Businesses Allowed in Lockdown 3.0

GST Registration of the TCS taxpayers


12 thoughts on “Dearness Allowance Hike for State Government Employees”

  1. I had this website saved some time previously but my laptop crashed. I have since gotten a new one and it took me a while to locate this! I also in fact like the theme though.

  2. Just to let you know, this content looks a little bit weird from my android phone. Who knows maybe it really is just my phone. Great post by the way.

  3. Aw, this was a really nice post. In idea I wish to put in writing like this moreover taking the time and precise effort to make an excellent article but what can I say I procrastinate alot and by no means seem to get one thing done.

  4. Fantastic blog post. I used to be checking constantly to this weblog & I am so inspired! great info, especially the closing paragraphs. I really want such info. I used to be looking for this kind of information for a lengthy time. Thank you & good luck.

  5. Nice to be visiting your weblog again, it has been months for me. Well this piece that i’ve been waited for so long. Thanks, huge share.

  6. This is a smart blog. I mean it. You have so much knowledge about this issue, and so much passion. You also know how to make people rally behind it, obviously from the responses. Great job, indeed.

  7. Thank you pertaining to spreading this kind of wonderful content on your website. I came across it on google. I may check to come back whenever you publish much more aricles.


Leave a Comment