7th Pay Commission: Big bonanza on Dearness Allowance (DA), Dearness Relief (DR) for Central Government employees, pensioners coming before Holi?

7th Pay Commission latest news today: The centre may soon announce the Dearness Allowance (DA) for the January to June 2021 period ahead of the Holid Festival falling next month. However, if we go by recent media reports, there is a buzz that the central government is in the mood to announce a double bonanza for both central government employees and pensioners. The media reports further claim that the central government may choose to announce 4 per cent DA for H-1 2021 period while they might choose to restore DA and Dearness Relief (DR). If they do this, it will be a big Holi bonus for around 52 lakh central government employees and near 62 lakh central government pensioners. However, the central government is yet to make any official statement in this regard.

DA calculation for H-1 2021

Speaking on the calculation involved in central government employees expecting 4 per cent DA for January to June 2021 period; Prayagraj-based AG Office Brotherhood's Harishankar Tiwari said, "The Union Labour Office has declared the AICPI (All India Consumer Price Index) data that indicates that the centre will announce DA hike to the tune of at least 4 per cent. The central government employees have been speculating about the DA hike about the same 4 per cent but after the declaration of this AICPI data, things regarding their DA hike has become more clear now."

However, these are mere announcements as the central government has already frozen DA and DR for the central government employees and pensioners till June 2021. However, if we go by the recent media reports as mentioned above, then this announcement would mean a big salary and pension hike for near 52 lakh central government employees and near 62 lakh central government pensioners.

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DA, DR benefit for central government servants, pensioners

If the centre decides to restore DA and DR by this Holi, then it would mean, 4 per cent DA hike for July to December 2020 and 4 per cent DA hike for January to June 2021 will be added in the monthly salary of the central government employees. So, a big salary hike can be expected in the central government employees. Similarly, after the DR restoration, central government pensioners will have a sigh of big relief too.

DA restoration will lead to rise in other benefits too

Since DA is linked to Travel Allowance (TA) and monthly PF contribution. The news of DA restoration will mean a rise in TA in one's monthly salary plus a rise in the monthly PF contribution of the central government employee as well.