7th Pay Commission: Government’s declaration on 4% hike in DA, DR, arrear clearance possible before Holi

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The Modi government is mulling to implement the hike in Dearness Allowance (DA) and Dearness Relief (DR) for over 1 crore employees of the Central Government before Holi, next month. This will come as a double dose of happiness for the central government employees, who are waiting for the hike for the last few months.

Central government employees who are waiting for an update on the 7th Pay Commission for January, here is a piece of good news for you. According to media reports The Modi government may implement the hike in Dearness Allowance (DA) and Dearness Relief (DR) for over 1 crore employees of the Central Government before Holi, i.e by March.

According to media reports, the Centre is expected to increase the dearness allowance of its employees by 4 percent which will increase the Dearness Allowance to 21 percent. At present, the dearness allowance is 17 percent.

The hike in DA will increase the in-hand salary of around 48 lakh employees of the Central government. According to media reports, apart from the DA hike, the government may also announce a hike in dearness relief (DR), which is expected to benefit over 65 lakh, central government pensioners.

Meanwhile, some reports also claim that the government can also give 4 percent arrears. With this, the total DA will increase to 25 percent. However, it has not been decided yet and there is no official announcement from the government in this regard yet.

The increase in dearness allowance is likely to be in accordance with the accepted formula, based on the recommendations of the seventh Central Pay Commission. The hike in DA and DR will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 (for a period of 14 months from January 2020 to February 2021).

The decision will benefit 48.34 lakh central government employees and 65.26 lakh pensioners. It is estimated that the savings on the suspension of these installments of DA and DR of state government employees and pensioners will be Rs 82,566 crore, PTI quoting sources had said.

Published by Riya Sharma on 20 Feb 2021

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