The central government has some good news in store for its 50 lakh employees and 61 lakh pensioners. The Centre has reportedly decided to hike Dearness Allowance (DA) and Dearness Relief (DR) according to the current rate of inflation.
The Centre is expected to reinstate the 4 per cent Dearness Allowance (DA) hike, which was been on hold since April 2020 due to the economic downturn caused by the COVID-19 pandemic. Several reports have indicated the government could start giving the 4 per cent increase in DA from January. However, the Centre still has not made any official announcement regarding the DA hike.
Currently, the DA for central government employees stands at 17 per cent as the Centre halted the promised 4 per cent hike in DA till July 2021. The DA hike was expected in accordance with the formula based on recommendations from the 7th Central Pay Commission.
It was reported earlier that the Association of Employees Confederation of Central Government Employees and Workers had told Union Finance Minister Nirmala Sitharaman about the current status of the union treasury. The body urged the Finance Minister to award the Dearness Allowance (DA) to eligible government employees and pensioners according to the current rate of inflation.
The Central Government usually hikes DA twice a year to compensate for price increase and inflation. The last proposal to hike the DA by four per cent was floated in January 2020, and the Cabinet had approved the hike in March 2020.
The Dearness Allowance hike came as a major relief for nearly 50 lakh employees and over 60 lakh pensioners. However, central salary and pension recipients did not get the hiked DA due to the economic instability caused by the coronavirus pandemic.