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HomePersonal FinanceGovernment may increase dearness allowance in preparation for giving gifts to central...

Government may increase dearness allowance in preparation for giving gifts to central employees

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At present, central employees get DA of 17 percent dearness.



The central government may increase the salaries of central employees on the new year. Under the Seventh Pay Commission, 48 lakh central employees waiting for the salary hike can get this great news on the new year. An increase in the dearness allowance of central employees can be announced soon. It is believed that millions of central employees can get this gift on the new year. The Ministry of Labor has revised the Consumer Price Index to determine Dearness Allowance (DA) from the year 2001 to 2016.

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Currently, the base year of the Consumer Price Index for Industrial Workers is 2001 and now it has been reduced to 2016. It is clear that a difference of 15 years in the base year in one stroke will increase DA. A four percent increase in DA for central government employees was announced in March. Later, due to the ongoing Corona epidemic in April, the increase was deferred to June next year. At present, central employees get DA of 17 percent dearness.

Now central employees can get good special dearness allowance in future. The government has changed the base year. Inflation is bound to increase. This change will directly benefit 48 lakh central employees of the country. Assessment of employee salary and DA is based on this Consumer Price Index. With this decision of the government, about three crore industrial laborers in the country will also get relief and their salary can be increased.

However, the central employees will not get immediate benefit of this, as the increase in DA is banned by the central government till June 2021. Amid the Corona crisis, the government halted the payment of increased DA from January in the last week of March. Apart from this, there has also been talk of a ban on the increase till June next year. Nevertheless, a change in the base year of the consumer price index will directly benefit central employees in the future.

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