Central Govt Employees Likely to Get 4% Hike in Dearness Allowance From January

This increase is in the Dearness Allowance is expected to be in accordance with the recommendations of the 7th Central Pay Commission. Here come a piece of good news for the Central government employees as they are going to get hike in their salary from January itself. The New Year 2021 seems to be bringing good news for them. As per media reports, the Central government employees are going to get 4 per cent hike in their Dearness Allowance from this month itself. The reports further added that the government employees will not have to wait till June to get their long-pending due. 

This increase is in the Dearness Allowance is expected to be in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The central government employees must note that in March 2020, the Union Cabinet, chaired by the Prime Minister, Narendra Modi had approved to release an additional instalment of DA to them and Dearness Relief (DR) to pensioners from January 2020. Notably, there will be an increase of 4 per cent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise, the Ministry of Finance had earlier informed.

However, the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief was fixed at Rs 12,510.04 crore per annum and Rs 14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). The move from the Central government will benefit around 48.34 lakh Central Government employees and 65.26 lakh pensioners.

In the meantime, the Central government has also allowed extended the disability compensation to all serving central government employees who get disabled in the line of duty and are retained in service in spite of such disablement. An announcement to this effect was made by Union Minister Jitendra Singh said on Friday.

Issuing an order, the Union Minister had said that the move from the government will particularly provide a huge relief to young central armed police force (CAPF) personnel of CRPF, BSF, CISF, etc since disability in performance of duties is generally reported in their case due to constraints of job requirement as well as hostile or difficult work environment.

The prime objective of all these new initiatives is to provide ease of living for government servants even after they have superannuated and become pensioners or family pensioners or elder citizens, he was quoted as having said in the statement.