The Modi cabinet has taken a decision to increase the DA of central employees from 17% to 28%. The cabinet has removed the ban on DA increase that was imposed during the Corona period.
In view of the Covid pandemic, last year in January the government had taken a major decision to hold the additional instalments of DA and DR of central government employees and pensioners respectively.
With the restoration of DA, central government employees are likely to see a big hike in their take-home salary, PF contribution, provident fund contribution, and gratuity as well.
As of now, three instalments of DA were pending- 4% from January 1, 2020, to June 30, 2020, 3% from July 1, 2020, to December 31, 2020, 4% from January 1, 2021, to June 30, 2021. Perhaps, It is still not clear when the government will pay the DA arrears due from January 1, 2020.