Central government employees are likely to take home higher salaries from next year as the Centre is expected to restore a Dearness Allowance (DA) hike that was put on hold in April due to the economic slowdown caused by the pandemic.
While the central government approved a four percent DA hike for its employees in March this year, it was put on hold till July 1, 2021, in April due to the ongoing crisis.
Following the order temporarily halting the hike, central government employees have been getting DA at the current rate of 17 percent as part of their salary or pension.However, the employees are likely to get 21 percent DA, as per the 7th Pay Commission, from July 2021.
Employees are pensioners are hopeful that the government will increase the DA after July 1, 2021.For employees, the salary will increase after the hike, while retired individuals will see a rise in pension.
The central government usually hikes DA twice a year to compensate employees for price incenses and inflation.The last proposal to hike the DA by four percent was floated in January and it was later approved by the Union Cabinet in March.
