New Delhi: Central government employees across India are awaiting the big 7th Pay Commission update on Dearness Allowance (DA) hike, salary increase, arrears clearance, TA, PF contribution, and Medical allowance. Any hike in DA portion will directly benefits lakhs of central government employees as this will increase their salary significantly. There were reports that the Narendra Modi government would announce DA Hike ahead of Holi 2021. However, no such announcements have come from the central government.
So far, the three installments of DA Hike for the central government employees, and Dearness Relief (DR) to pensioners are due on January 1, 2020, July 1, 2020, and January 1, 2021. The Central government decided to freeze these installments of DA and DR citing ongoing Covid pandemic.
If any announcement comes regarding the DA Hike and the central government decides to increase DA by 4 per cent then total Dearness Allowance for the central government would become 28 per cent.
This hike in DA, if happens, will increase the central government’s salary significantly.
If the DA hike is implemented from January, there will be arrears for the central government employees. This means the central government employees will get more money.
IF the DA hike is implement, there will be changes in DA, House Rent Allowance, medical allowance, Travel Allowance for the central government employees.
If the central government decides to hike the DA, it will increase the PF amount for the central government employees. The calculation of PF of the central government is done on the basis of the basic plus DA.