Good News For 48 Lakh Govt Employees: 4% DA Hike Likely From January; DA Becomes 21% Of Salary!

The new year also brings a piece of good news for the Central government employees since they are going to get a hike in their salary from January itself. 

Hike In Dearness Allowance

The Central government employees will be getting a 4 percent hike in their Dearness Allowance from this month itself, according to the media reports. 

The best part about this news is that the government employees will not have to wait till June to get their long-pending due.

How Much Hike Is Expected? 

The hike in the Dearness Allowance is expected to be in accordance with the accepted formula.

It should be based on the recommendations of the 7th Central Pay Commission.

Prior to this, during March 2020, the Union Cabinet, chaired by the Prime Minister, Narendra Modi had approved the release of an additional instalment of DA to them.

Further, they have released Dearness Relief (DR) to pensioners from January 2020.

According to the Ministry of Finance, there will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.

Moreover, they have fixed the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief.

It is 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) respectively.

How Does This Help? 

This move will benefit over 48.34 lakh Central Government employees and 65.26 lakh, pensioners.

In addition to that, the Central government has also extended the disability compensation to all serving central government employees.

This will benefit those who get disabled in the line of duty and are retained in service in spite of such disablement. 

In the same regard, an announcement was made by Union Minister Jitendra Singh on Friday.

This 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 the performance of duties is generally reported in their case due to constraints of job requirement as well as hostile or difficult work environment said

the Union Minister while issuing the order.