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Hike in Dearness Allowance, Dearness Relief For 50 Lakh Central Govt Employees From This Month 

Hike in Dearness Allowance, Dearness Relief For 50 Lakh Central Govt Employees From This Month 

7th Pay Commission Latest News Today: Starting from the New year itself, here comes a piece of good news for over 50 lakh central government employees as their dearness allowance (DA) and dearness relief (DR) are going to be increased from January itself. The hike will also benefit around 61 lakh pensioners. As per media reports, the Central government is likely to announce hike in Dearness Allowance (DA) and Dearness Relief (DR) as per the current 28 percent rate of inflation. Also Read – 7th Pay Commission Latest News: Railways Offers Jobs With Huge Package, Increment | Apply Today

Reports further suggested that the Association of Employees Confederation of Central Government Employees and Workers apprised Finance Minister Nirmala Sitharaman regarding the current status of the government treasury and has urged her to grants DA and Dr to government employees and pensioners as per the current inflation rate of 28 percent. Also Read – 7th Pay Commission Latest News Today: Nearly Five Lakh Employees of This State to Get Salary Hike From January 2021 | Check Details

The development comes as 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. Also Read – 7th Pay Commission Latest News: Compensation, Hike in Dearness Allowance | Centre Has Big Plans For These Central Govt Employees in 2021

The Centre had also decided that additional instalment of dearness allowance payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid. 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 had said.

Moreover, the Union Cabinet had also approved a 4 per cent increase in DA for government employees and pensioners to 21 per cent. But with the April decision, this 4 per cent hike was been put on hold.

The financial announcement from the Centre is expected to impact the government exchequer by nearly Rs 12,510 crore per annum (DA) and about Rs 14,595 crore (DR) in FY 2020-21 (for a period of 14 months from January, 2020 to February, 2021).

The DA and DR is given to the central government employees and pensioners respectively to help them bear with their expenses keeping inflation in mind. It is announced twice a year, first instalment from January to June and the second one from July to December.


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