The central government is most likely to implement a hike in dearness allowance (DA) and dearness relief (DR) by the end of February 2021. The move is expected to benefit over 48 lakh central government employees and about 65 lakh central government pensioners.
According to media reports, the central government may hike DA by 4 percent for the period of January-June 2021. The proposed hike will be based on the recommendations of the 7th Central Pay Commission. Also, the government is expected to announce a hike in dearness relief (DR) which will benefit over 65 lakh central government pensioners. However, an official announcement on the same is still awaited.
Due to the onset of the coronavirus pandemic in 2020, the central government had earlier announced that the dearness allowance for central government employees will remain unchanged till 2021.
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).
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