More Salary For 50 Lakh Govt Employees? DA Can Be Hiked To 31% Very Soon!

By Shreya Bose Last updated Aug 18, 2021

The central government had announced a hike of 28% in Dearness Allowance (DA) and Dearness Relief for its employees before.

The earlier figure was 17% for DA but after the announcement the figure rose to 28% to come into effect from July this year.

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11% Hike Explained

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%.

Now it appears that another hike could come into place soon.

Adding 3% to 28%, the new hike of 31% will see a rise in salaries of 65 lakh pensioners and 48 lakh central government employees.

The central govt hikes DA twice every year but the increment was temporarily suspended due to the pandemic.

The temporary freeze allowed the government to save Rs 37,530.08 crore.

With this amount, it was able to drum up resources to brace against the pandemic’s devastating impact on the economy and the lockdowns that followed.

The following states have promised a state-level DA hike for its employees.

A DA hike of 28% is in the offing for state government employees.

This would apply to 16 lakh employees and 12 lakh pensioners of the state.

Employees here will receive a DA hike of 17%, taking the total hike to 28%.

Same as the centre, these state employees will see an 11% increase in their salaries from the previous 17%, taking the total hike to 28%.

Same as the others, state government employees here also get a 11% DA hike.

However, there is a chance of an additional 3% hike in the future.

The situation here is unique in that the government here increased DA to 21.5%.

State government employees here also get a 11% hike.

Moreover, the state govt government approved a hike of 2% in house rent allowance.

A 3% hike is also a possibility which will further increase the DA amount.

Chief Minister Himanta Biswa Sarma also joined the bandwagon of states increasing the DA for its employees just ahead of Independence Day.

It is once again an 11% hike which takes the DA total hike to 28%.