Central Government Employees are eagerly waiting for the Dearness Allowance (DA), which has been due from as far back as January 2021. Due to the covid 19, pandemic Government had frozen three instalments of Da for central government employees and Dr for pensioners due on Jnuary1,2020, July 1, 2020, and January 1, 2021. The government saved Rs 37,430.08 crore through the move which helped to deal with the crisis.
The Government has decided to restore the pending DA from July 2021. Narendra Modi led Government had announced that government employees will be given full DA benefits soon. This was confirmed by Anurag Thakur, Minister for states for Finance in a written reply to Rajya Saba
Central Government Employees To Get Full DA Benefits
A total of 50 lakh central government employees and over 65 lakh retirees are eagerly waiting for their Dearness Relief (DR) and will benefit from this. According to the latest data from the All India Consumer Price Index (AICPI), the DA will rise by at least 4% from January to June 2021.
The restoration of DA benefits from July 1 can affect the salary of Central Government employees as it would increase significantly. The DA hike will directly affect the DA, HRA, Travel Allowance, Medical allowance of central government employees.
Pensioner’s DR Gets Increased Automatically With The DA Hike
As we know that the PF contribution of government employees is calculated based on Basic Salary plus DA. As the DA hike is directly proportional to Dearness Relief(DR). So a pensioner’s DR gets increased automatically when the DA hike is announced.
The rise in DA from the existing 17 per cent to 28 per cent will not only lead to a rise in central government employees’ monthly salary. It will lead to a rise in their monthly PF contribution as well.