28% DA Hike Confirmed For 50 Lakh Govt Employees From This Date (7th Pay Commission)

By Arpita Last updated May 5, 2021

Narendra Modi led Government had announced that government employees will be given full DA benefits soon.

The Narendra Modi led government has agreed to release the pending dearness allowance (DA) and dearness relief (DR) of employees and pensioners from July 1, 2021.

The Instalments Of DA And DR Of Employees And Pensioners

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 threeinstalments 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 decision to release the future instalments of Dearness Allowance due from 01.07.2021 is taken and the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.”

Employees and retirees of the federal government will no longer have to wait long to collect their increased salaries.

The dearness allowance is expected to rise by 11 per cent from its current rate of 17 per cent, resulting in a total increase of 28 per cent.

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 and Medical allowance of central government employees.

The DA is said to be 3 per cent from January to June 2020, 4 per cent from July to December 2020, and another 4 per cent from January to June 2021, for a total of 17 + 4 + 3 + 4) 28 per cent.

The central government also declared an increase in the annual family pension cap for government retirees. There would be a nearly two-and-a-half-fold rise. The maximum family pension cap was Rs 45,000 per month. It has now increased to Rs 1.25 lakh per month.