The newest reports coming in have suggested that more than 1 crore employees of the Central government might get a hike in their Dearness Allowance (DA) and Dearness Relief (DR). Also, both the hikes will be implemented before Holi this year!
Central government employees have been waiting for this good news for a long time now. In January, the news was that central Government employees will not be receiving any dearness allowance (DA) and dearness relief (DR) along with the January salary, as ruled by Union Cabinet Secretary Rajiv Gauba.
Government To Increase Dearness Allowance By 4 Percent Before Holi
As per reports, the government will be increasing the DA by 4 percent, which will result in the Dearness Allowance to be 21 per cent. As of now, the DA offered to the central government employees is at 17 per cent.
This hike in the DA will result in the in-hand salary of about 48 lakh employees of the Central government. Additionally, the hike in the dearness relief (DR) will also be announced soon, and will benefit more than 65 lakh central government pensioners.
Reports suggest that the government is discussing 4 per cent arrears as well, which will increase the DA to 25 per cent. No official announcement about that has been made about this yet. The increase in dearness allowance will most probably be in alignment with the accepted formula, which in turn will be based on the recommendations of the seventh Central Pay Commission.
Physically Disabled Children/Siblings Of Deceased Employees To Receive Pension
As per reports, the government has also issued a directive in the budget about the pension of the children/siblings of deceased government servants/pensioners who are mentally or physically disabled.
Specifically, if the total family eligible family pension is less than 30 percent of the last salary drawn by the deceased government servant/pensioner, then a family pension will be given to them for their entire life. They will also be eligible for dearness relief.
In the Financial year 2020-21 (for a period of 14 months from January 2020 to February 2021), the hike in DA and DR will be costing about Rs 12,510.04 crore and Rs 14,595.04 crore respectively.
This decision will reportedly benefit 48.34 lakh central government employees and 65.26 lakh pensioners.