IN PICS! 7th pay commission Dearness allowance will kick in from January to June 2021 period

By Lokmat English Desk | Published: February 25, 2021 03:46 PM2021-02-25T15:46:27+5:302021-02-25T15:47:28+5:30

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Central employees may soon get some good news. This could help central staff cope with the financial difficulties caused by the corona virus epidemic.

The finance ministry had in April 2020 decided to put on hold increment in dearness allowance (DA) for 50 lakh central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.However, it is now hoped that the DA hike will kick in from January to June 2021 period.

According to reports, central employees will soon get increased salaries. Also, pensioners can get some relief from DA.

At present, central employees get DA of 17 percent, and hence a further increase of DA by 4 percent, will take the total DA to 21 percent

The last DA hike for central government employees was effected last month effective January 1. 2020. The Union Cabinet had approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent.

It has been widely reported in the media that the Modi government may increase dearness allowance by up to 4 percent, leading to a substantial hike in the salary of the central government employees which will cheer up 50 lakh central government employees and 61 lakh pensioners.

According to ACPI data, the Narendra Modi government may announce a four per cent DA between January and June 2021. This means that after the DA is declared, the DA of the employees can be increased in the basic monthly salary (17 + 4 + 4) i.e. up to 25% of the total.

According to the Seventh Pay Commission, the Travel Allowance (TA) of Central Government employees will automatically increase as soon as the DA is announced.

In such a scenario, the monthly salary of Central Government employees will be multiplied after the announcement of the DA. Central government employees and pensioners are eagerly awaiting the news.