Sources said that the Centre may also announce the restoration of the DA which was put on hold in July 2020 due to COVID-19 pandemic.
Lakhs of Central government employees are waiting for the announcement of their Dearness Allowance (DA) and restoration of the 4 per cent DA announced by Modi government for July-December 2020, but according to reports the Centre is likely to announce 4 per cent DA for January-June 2021 before Holi. Sources said that the Centre may also announce the restoration of the DA which was put on hold in July 2020 due to COVID-19 pandemic. It is to be noted that the Central government is yet to make any official announcement regarding the DA hike.
1. Centre may announce 4% DA
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Several media reports have claimed that the Centre may announce 4 per cent DA for January-June 2021.
2. Restoration of DA of Central government employees
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It is learnt that Prime Minister Narendra Modi-led government at the Centre may also restore the DA of central government employees which has been on hold since July 2020.
3. DA of Central government employees
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Notably, the central government employees are currrently getting 17 per cent DA.
4. Increase in DA
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If the Centre restores 4% DA for July to December 2020 and adds another 4% DA for January-June 2021, then the net DA of the central government employees would increase by 8% to 25%.
5. Change in salary
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An increase of 8% in DA means that the monthly salary of the central government employees will increase considerably.
6. 7th CPC recommendations
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As per the recommendations of the seventh pay commission (7th CPC), the Travel Allowance (TA) of a central government employee also goes up in sync with the DA which means that TA of the central government employees would jump by 8%.
7. Importance of DA
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The Centre revises Dearness Allowance (DA) twice in a year in order to help the central government employees beat the heat of inflation in the period. First installment of DA is announced between January to June while second Tranche of DA is announced between July to December.
