7th Pay Commission: Modi govt may announce hike in DA, DR before Holi

New Delhi: The Central government employees, waiting with a baited breath for the announcement on dearness allowance (DA) hike under the recommendation of 7th Pay Commission by the government, may hear some good news before Holi.

The buzz around the increase in dearness allowance by up to 4 per cent gained further momentum after the announcement of All India Consumer Price Index and after the presentation of the Union Budget 2021. All eyes are now glued to the Modi government’s big announcement on dearness allowance (DA), dearness relief (DR) and arrear clearance.

Modi government may increase dearness allowance by up to 4 per cent, leading to a substantial hike in the salary of the Central government employees. In further cheer to 50 lakh Central government employees and 61 lakh pensioners, the government will also make announcements regarding hike in Dearness relief (DR).

The government’s announcement on DA hike will be based on the recommendation of the 7th Pay Commission. At present, central employees get DA of 17 percent, and hence a further increase of DA by 4 percent, will take the total DA to 21 percent. In the aftermath of the COVID-19 crisis, all eyes are fixed on the government’s announcement. The DA hike will kick in from January to June 2021 period.

The Finance Ministry had in April 2020 decided to put on hold increment in dearness allowance (DA) for 50 lakh Central government employees and 61 lakh pensioners till July 2021 due to the COVID-19 crisis.

The additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid, the Department of Expenditure said in an office memorandum. However, DA and DR at current rates will continue to be paid.