Central government employees may get DA hike soon | Fusion - WeRIndia

Good news for central government employees as the government assured to provide the pending Dearness Allowance (DA) to them from 1st July 2021.

In the wake of COVID-19, the central government earlier decided not to pay the hiked DA to central government employees and pensioners from 1st January 2020. Since then, the revised DA was not paid to them. They are getting the same DA at the old rate which they were receiving earlier. The government saved ₹37,530.08 crores with the suspension of the revised DA payment.

Due to COVID-19, the government also decided to cut the salaries of Members of Parliament (MPs) by 30 per cent to meet the situation that arose due to COVID-19.

There are three pending DA instalments, 1st January 2020, 1st July 2020 and 1st January 2021. Now the government decided to pay all the pending DAs to the employees and pensioners. The Minister of State for Finance, Anurag Thakur, announced it during the Budget session of the Parliament.

More than one crore central government employees and pensioners will benefit from this payment.

Currently, employees are getting DA at the rate of 17 per cent. While they were supposed to receive the revised DA from January 2020, the government suspended the revision. Hence, they are receiving the DA at 17 per cent. The DA is hiked by four per cent. With the revision, employees and pensioners will receive it at 21 per cent.

Though the increase helps the employees to get higher DA, they will not receive any arrears on non-revision of DA for the suspended period. That means, they will receive more payment from 1st July 2021; but, they might not receive any arrears for the due period of the last one and half a year.

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