The Central Government employees and pensioners are expected to get a 4% increase in DA. This hike is expected to take effect in January 2021.
Here is some good news for the Central Government employees and pensioners in this new year, amid the ongoing coronavirus pandemic. As per the latest media reports, the Central Government employees and pensioners are expected to get a 4% increase in Dearness Allowance (DA).
This hike is expected to take effect in January 2021 itself and this would in accordance with the accepted formula that is based on the recommendations of the 7th Pay Commission. In March 2020, the Union Cabinet chaired by Prime Minister, Narendra Modi had approved to release an additional instalment of DA to the Central Government employees and Dearness Relief to pensioners with effect from January 1, 2020.
The Ministry of Finance said that there will be an increase of the Basic Pay/Pension to compensate for the price rise.
Points related to DA hike
- The impact on the exchequer as a result of the Dearness Allowance (DA) and Dearness Relief (DR) was fixed at Rs 12,510.04 crore per annum.
- In Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021) it will rise to Rs 14,595.04 crore.
- This would benefit around 48.34 lakh Central Government employees and 65.26 lakh pensioners.
- There will be an increase of 4% over the existing rate of the Basic Pay/Pension
In another development relating to the 7th Pay Commission, the government decided to extend the Disability Compensation for all serving employees. This decision would go a long way and especially provide relief for those in the central armed police force (CAPF), personnel of the BSF, CISF, BSF etc.
The decision relating to the NPS would also benefit employees and provide ease of living for government servants even after they have superannuated and become pensioners or family pensioners or elder citizens, he also said.
The 2009 order said that those government servants appointed on or after January 1 2004 and covered under the National Pension Scheme (NPS) do not get such compensation.
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