What is the difference between DA vs DR? If you are a government employee then know how different dearness allowance and dearness relief are from each other.

DA vs DR Difference: If you are a government employee then you must have heard or spoken the words Dearness Allowance (DA) and Dearness Relief (DR). Often government employees and pensioners use these two words a lot in their personal lives. But, what actually happens? Because, many people do not have any information about them. The increase in DA and DR benefits about 50 lakh central employees and about 65 lakh retired central pensioners. Often the government increases the DA and DR of government employees.

In fact, in view of the increasing inflation every year, the central and state governments provide some economic benefits from time to time to their employees and pensioners to provide relief from the effects of inflation. If seen, these are called DA and DR. Let us tell you in detail about the difference between DA and DR.

What is DA (Dearness Allowance)

DA is a part of the salary of central government and state government employees. Dearness Allowance (DA) is the amount that the Central and State Government gives to its working employees on the basis of basic pay to compensate for inflation. Keeping in view the inflation data, DA is revised by the government in the beginning of March and October. After this, it is implemented in January and July, that is, this dearness allowance is implemented twice a year. DA is a part of the employee’s ‘cost-to-company’ (CTC). It is deposited in the employees’ account every month as salary.

What is DR (Dearness Relief)?

Actually, DR is a part of the pension amount given by the government to the pensioners every month, the purpose of which is also to reduce the rising expenses. Therefore, the government revises DA rates from time to time. Usually it is announced twice a year. This affects the pension of those retired central government employees who receive individual or family pension from the government. Usually the increase in DR is announced along with DA.

How are DA and DR decided?

The government assesses the inflation situation on the basis of Consumer Price Index (CPI). If inflation increases, the government can revise the rates of DA and DR. The central government usually announces their new rates twice a year, while the state governments can take decisions at different times at their level. In most of the cases, when the Central Government increases DA, DR is also increased by the same percentage. However, this system may be different in different states and the government there takes decisions according to its own rules.

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