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7th Pay Commission: Central government employees expected to get 4% hike in DA, DR before Holi

According to media reports, the Centre is expected to increase the dearness allowance of its employees by 4 per cent which will increase the Dearness Allowance to 21 per cent. At present, dearness allowance is 17 per cent.

India TV Business Desk India TV Business Desk
New Delhi Updated on: February 19, 2021 15:09 IST
7th Pay Commission: Central government employees expected
Image Source : PTI

7th Pay Commission: Central government employees expected to get 4% hike in DA, DR before Holi

7th Pay Commission Latest News: Central government employees who are waiting for an update on 7th Pay Commission for January, here is a piece of good news for you. According to media reports The Modi government may implement the hike in Dearness Allowance (DA) and Dearness Relief (DR) for over 1 crore employees of the Central Government before Holi, i.e by March. 

According to media reports, the Centre is expected to increase the dearness allowance of its employees by 4 per cent which will increase the Dearness Allowance to 21 per cent. At present, dearness allowance is 17 per cent. 

The hike in DA will increase the in-hand salary of around 48 lakh employees of the Central government. According to media reports, apart from DA hike, the government is may also announce a hike in dearness relief (DR), which is expected to benefit over 65 lakh, central government pensioners.

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Meanwhile, some reports also claim that that the government can also give 4 per cent arrears. With this, the total DA will increase to 25 per cent. However, it has not been decided yet and there is no official announcement from the government in this regard yet. The increase in dearness allowance is likely to be in accordance with the accepted formula, based on the recommendations of the seventh Central Pay Commission.

The hike in DA and DR will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 (for a period of 14 months from January 2020 to February 2021). The decision will benefit 48.34 lakh central government employees and 65.26 lakh pensioners.

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