Central govt employees will see a hike in their dearness allowance from 17% to 28% from July 1 onwards.
Central govt employees will see a hike in their dearness allowance from 17% to 28% from July 1 onwards.
Explanation of Hike
The 11% hike comes about as there are 3 pending installments to be paid.
For the first installment of Jan 2020 a 4% hike is applicable.
For the second installment of June 2020 a 3% hike is applicable
For the third installment of Jan 2021 a 4% hike is applicable.
Summing up the three, we come to a total hike of 11% from the previous 17%.
Why The Govt Withheld Payment And Who Are Affected
The govt had withheld DA and DR disbursement due to the pandemic which helped the govt save Rs 37,530.08 crore.
With this amount the govt could drum up resources to brace against the pandemic’s devastating impact on the economy and the lockdowns that followed.
The hike will impact 1.5 crore central government staff along with those working for other govt divisions such as the railways, mines, oil fields, major ports, or any public corporation.
Contracted and casual workers will also be benefited.
Previous Arrears And Future Hike
It should be noted though that when the payment comes from July 1 the employees will not receive any arrears on non-revision of DA for previous periods, despite demands.
Another hike can also be expected from June 2021 as per Harishankar Tiwari, former president of AG Office Brotherhood and president of Citizens Brotherhood.
He said that the rise could be 3-4% which could effectively take the total DA hike to 32%.
Variable DA Hiked For 1.5 Cr Govt Employees By Upto Rs 205: How Will It Benefit Govt Employees?
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