The new year has brought a big gift for the central employees. It is believed that from January 2021, the central government may increase the Dearness Allowance or DA by 5 percent. This increase is expected to be in DA as per the accepted formula, which is based on the recommendations of the 7th Central Commission. Central government employees should note that in March 2020, the Union Cabinet chaired by the Prime Minister had approved the release of an additional installment of Dearness Relief to them and pensioners from January 2020. There will be a 5 percent increase at the current rate of 17 percent of the basic salary / pension, to compensate for the price increase, the Finance Ministry previously reported.
Union Minister Prakash Javadekar announced that the cabinet has approved a five percent increase in DA of employees. He said, ‘Diwali gift will be given to government employees.
The cabinet has approved a five percent increase in DA. 50 lakh government employees and 62 lakh pensioners will get the benefit. He told that this decision will cost the government about Rs 16000 crore. Right now DA has increased from 12 percent to 17 percent.
He also said that under the PM Kisan Samman Nidhi, the deadline for mandatory seeding of Aadhaar card has been increased to 30 November.
Notably, in March 2020, the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved to release an additional instalment of DA to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2020.
The finance ministry had then informed that there will be an increase of 5 per cent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.