Good News! 7th pay commission: Central govt employees to get hike in dearness allowance (DA)

There is a good news for the central government employees. An increase in dearness allowance for central employees has been announced.

Information in this regard has been obtained from a data released by the Labor Office. The Labor Office has released the data of ACIPI for the period July 2020 to December 2020. Accordingly, it has been decided to increase the dearness allowance of central employees by four percent.

If the Centre decides to restore 4% DA for July to December 2020 and add another 4% DA for January-June 2021, then the net DA of the central government employees would jump to 25%.
Due to the Corona crisis, the central government had put on hold the hike in DA till June 2021 to tackle the crisis emerging out of Covid 19 pandemic.

Central government employees were paid DA at 17 per cent instead of 21 percent to mitigate challenges of Covid 19. Now it is speculated that the government might take the DA hike to 28 per cent instead of restoring 21 per cent to help government employees, who faced financial hardships during the corona times.  

The demand is to take it as high as 28% percent rather than just around or above 21% or even 25%. Will it happen? Well, Budget 2021 is set for February 1 and everyone should tune in to find out if there is any announcement or benefits for them.