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7th Pay Commission: When can Central Government employees expect hike in DA

There are reports that now indicate that the additional four per cent DA could be rolled out as soon as January 2021.

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7th Pay Commission: When can Central Government employees expect hike in DA
Central Government DA is set to increase. (Image for representative purpose)
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There is good news in store for central government employees in new year. The salaries of the central government employees are all set to rise in 2021 with the government expected to restore the four per cent Dearness Allowance (DA) hike that was put on hold in 2020 due to the COVID-19 pandemic.

There are reports that now indicate that the additional four per cent DA could be rolled out as soon as January 2021. However, the government has not officially made an announcement. As things stand at the moment, the DA remains at 17 per cent as the government had put on hold the four per cent hike till July 2021.

While there are chances that the DA hike could be rolled out earlier due to the improving economic situation, a confirmation on the same is awaited at the moment.

It may be noted that the increase in DA is expected to be in accordance with the formula which is based on recommendations from the 7th Central Pay Commission. Following the hike, central government employees and pensioners will get 21 per cent DA.

The hike in DA will come as a massive relief to over 48 lakh central government employees and 65.26 lakh pensioners. In addition to the DA hike, the Centre has also decided to extend the Disability Compensation for all serving employees, including those covered under the National Pension System (NPS).

Union Minister Jitendra Singh made the announcement on January 1. He said all central government employees who got disabled while performing their duties and were retained in the job despite such disablement will be covered under the new directive.

The order will also particularly provide relief to young CAPF personnel like CRPF, BSF and CISF since such individuals are usually at risk of suffering a disability in line of duty.

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