It is expected that the Centre may announce the restoration of the DA which was put on hold in July 2020 due to the coronavirus outbreak.
Central government employees are eagerly waiting for the announcement of their Dearness Allowance (DA) and restoration of the 4 per cent DA announced by Prime Minister Narendra Modi-led government for July-December 2020. While, some reports claimed that the government is unlikely to make any announcement related to 4 per cent increase in DA for January-June 2021 before Holi, it is expected that Centre may announce the restoration of the DA which was put on hold in July 2020 due to the coronavirus outbreak.
1. 25% DA for January to June 2021?
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As per a report by Zee Business, the goverment might take the DA for January to June 2021 at 25 per cent to compensate for the DA that was put on hold during the coronavirus crisis.
2. Hike in travel allowance (TA)
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As per the rules of 7th Pay Commission, the Travel Allowance (TA) for central government employees will automatically rise once the DA is announced. The employees' salary will rise significantly once this is implemented.
3. Implementation of New Wage Code
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It is to be noted that the central government is planning to introduce the New Wage Code from April 1. As per the New Wage Code, the basic minimum salary of an employee will correspond to at least 50 per cent of the net CTC.
4. Update on Dearness Relief (DR)
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Around 58 lakh retired central government pensioners are waiting for the announcement of DA because it is directly linked to their Dearness Relief (DR).
5. DA restoration
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It is to be noted that DA is linked to Travel Allowance (TA) and monthly PF contribution and the restoration of DA will automatically lead to a rise in TA in monthly salary plus a rise in the monthly PF contribution of the central government employees.
6. What is the current DA of Central government employees?
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The central government employees are currrently getting 17 per cent DA.
