7th Pay Commission: Central Govt employees may get 4% hike DA, DR before Holi

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Average Salary Hike will be 7.7% in 2021: Aon Survey
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7th Pay Commission: Central Govt employees may get 4% hike DA, DR before Holi

According to media reports, the Modi government may implement the hike in Dearness Allowance (DA) and Dearness Relief (DR) for over 1 crore employees of the Central Government before Holi, i.e by March. 

The government is expected to increase the Dearness Allowance to 21% from the current rate of 17%. That would be a 4% hike in Dearness Allowance.

The hike in Dearness Allowance will increase the take-home salary of around 48 lakh central government employees of the country.

The Centre may also announce a hike in Dearness Relief (DR), which is expected to benefit over 65 lakh, central government pensioners.

Media reports also claim that the government can also give 4% arrears. With this, the total DA will increase to 25%. However, it has not been decided yet and there is no official announcement from the government in this regard yet.

The increase in dearness allowance is likely to be in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission. The hike in DA and DR will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 (for a period of 14 months from January 2020 to February 2021). The decision will benefit 48.34 lakh central government employees and 65.26 lakh pensioners.

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