7th Pay Commission Latest – Central Govt Employees DA Hike, DR Benefits!!

2021-04-12

Central Government Employees who are eagerly waiting for the Dearness Allowance (DA). According to the All India Consumer Price Index (AICPI) data release, one can expect at least 4 % DA hike for January to June, 2021 period. But, the double bonus are also there as Center is expected to restore DA from 1st July because they have DA hike on hold.
This will be good news for the retired central government employees for their Dearness Relief (DR) benefit will also get restored with DA restoration. It will be good news for around 50 lakh central government employees and around 65 lakh pensioners of the central government.
After DA notification the central government employees DA will be exist 17 % to 28 % (17 + 3 + 4 + 4). This includes 3% DA announced for January to June 2020, 4% DA announced for July to December 2020 and 4% DA expected for January to June 2021.
As central government employees salary is decided by the fitment factor (which is 2.57) multiplied by basic salary plus DA. When the DA will increase from 17 to 28%, a central government employee’s salary is increases.
Like Central Government servants, pensioners will also get the benefit of the DR restoration as their pension will increase in the same manner the way a central government employee’s salary will grow. After the DA announcement, their DR will go up and their monthly pension will go northward and they will also get arrears for the three installments of their DR.