Central Govt Employees To Get 4 % Hike in DA From January '21 Onwards

Central Govt Employees To Get 4 % Hike in DA From January '21 Onwards

According to media reports, the central government has announced a hike of 4 per cent in the dearness allowance of all its employees from January 2021 onwards without having to wait till the month of June to receive their long-pending dues. 


The increase is as per the accepted formula based on the recommendations of the 7th Central Pay Commission. It is to be noted that in March 2020, the Union Cabinet had approved the release of an additional instalment of DA to the employees and Dearness Relief (DR) to pensioners. Furthermore, it has been reported that an increment of 4 per cent over the current 17 per cent of the Basic/Pay Pension as compensation for inflation. 


The central government's decision of increasing the DA and Dr will have a combined impact of Rs 12,510.04 crore per annum and Rs 14,595.04 crore in 2020-21 (14 months from January, 2020 to February, 2021) on the exchequer. The decision is going to benefit almost 48.34 lakh central government employees and 65.26 lakh pensioners.


The government has also extended the disability compensation to all serving central government employees who got disabled in the line of duty and have been retained in service. 


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