In a good news for around 52 lakhs central government employees, the Centre is planning to hike the Dearness Allowance (DA) for its employees before Holi. Some reports claim that Prime Minister Narendra Modi-led government at the Centre is planning to announce a double bonanza for central government employees as well as pensioners.
1. How much DA hike is expected? According to reports, the Centre is likely to announce 4 per cent DA for H-1 2021 period and the central government could also restore DA and Dearness Relief (DR). Notably, the Centre is yet to make any official statement in this regard.
2. DA calculation for 2021 If the Centre decides to increase DA by 4 per cent then this would result in a big salary and pension hike for near 52 lakh central government employees and near 62 lakh central government pensioners.
3. DA, DR benefit for central government employees, pensioners If PM Modi-led government at the Centre announces to restore DA and DR by this Holi, then it would mean 4 per cent DA hike for July to December 2020 and 4 per cent DA hike for January to June 2021 will be added in the monthly salary.
4. Increase in salary of central government employees The decison to hike DA by 4 percent will increase the salary of central government employees significantly.
5. DA restoration It is to be noted that DA is linked to Travel Allowance (TA) and monthly PF contribution and the restoration of DA will automatically lead to a rise in TA in monthly salary plus a rise in the monthly PF contribution of the central government employees.
