Central government workers are likely to receive higher salaries from next year as the Centre is expected to restart the Dearness Allowance (DA) hike which was put on hold due to the economic downturn caused by the COVID-19 pandemic.
Centre had approved a four per cent DA hike for Central government employees in March 2020. However, in April, the hike was put on pause till July 1, 2021, due to the COVID-19 pandemic.
Following this order to halt the hike in DA, central government employees have been receiving DA at the current rate of 17% as part of the salary package or pension package. The workers are expected to get 21% DA, as per the 7th Pay Commission from July 2021 onwards.
Government employees are hopeful that their DA would be increased after July 1, 2021. For active workers, their salary will increase after the hike in implemented and retired employees will see an increase in their pension amount, reports India Today.
Centre usually hikes DA twice a year to compensate its employees for price incenses and also inflation. The last proposal to hike the DA by four per cent was introduced in January, and the Union 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, as per India Today. However, the Centre's salary and pension recipients did not get the hiked DA due to the economic instability caused by the coronavirus pandemic.
The government has not clearly stated whether it will hand over hiked DA to employees and pensioners from July 2021. However, the Centre's earlier order indicates that employees are likely to get 21 per cent DA from 2021 onwards.