Few weeks ago, it was reported that the Centre was planning to announce DA hike before Holi but no such announcement was made by Modi government.
Lakhs of Central government employees are waiting for the announcement of Dearness Allowance (DA) hike as the hike in DA will increase the salary of Central government employees significantly. Few weeks ago, it was reported that Prime Minister Narendra Modi-led government at the Centre was planning to announce DA hike before Holi festival but no such announcement was made by the Centre.
1. Dearness Allowance (DA) hike
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The three installments of DA for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, were frozen by the Centre due to COVID-19 pandemic.
2. Total hike in DA of Central government employees
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If Modi government decides to increase the DA by 4 per cent then the DA of Central government employees would become 28 per cent (17 + 3 + 4 + 4)
3. Change in salary of Central government employees
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A DA hike of 4 per cent will increase the salary of Central government employees significantly.
4. Arrears clearance
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Sources claim that the DA hike will kick in from January to June 2021 period, which means that lakhs of central government employees will get money in arrears too.
5. HRA, TA, Medical Allowance
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The hike in DA will directly affect the DA, HRA, Travel Allowance (TA), medical allowance of Central government employees.
6. Change in PF
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The Centre's decision to restore DA will also increase the PF balance of Central government employee. It is to be noted that the PF contribution of central government employees is calculated on the basis of basic salary plus DA.
