Srinagar, Dec 20: 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 per cent 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 per cent as part of their salary or pension. However, the employees are likely to get 21 per cent 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 per cent was floated in January and it was later approved by the Union Cabinet in March.
The DA hike came as a major relief for nearly 50 lakh employees and over 60 lakh pensioners, but they did not get the hiked DA due to the economic slowdown caused by the coronavirus pandemic.
While the government has not clearly said whether it will give hiked DA to employees and pensioners from July 2021, its earlier order indicates that employees are likely to get 21 per cent DA from next year. (India Today)