Central Government Employees to Receive Arrears in Dearness Allowance Hike

by | Jan 4, 2024 | Retirement Pension

Central Government Employees to Receive Arrears in Dearness Allowance Hike




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The central government has recently announced a hike in the Dearness Allowance (DA) for its employees. This decision comes as a relief for central government employees who have been eagerly awaiting a raise in their DA, which had been on hold for a while due to the COVID-19 pandemic.

The DA hike will benefit over 47 lakh central government employees and 68 lakh pensioners. The decision to increase the DA has been taken to help them cope with the rising cost of living. The DA hike will be applicable from July 1, 2021, and the arrears of the DA for the months of July, August, and September will also be given to the employees and pensioners.

The DA is a component of the salary that is calculated as a percentage of the basic salary to protect employees against inflation. It is revised twice a year, in January and July. The latest hike in DA is a result of the increase in the Consumer Price Index for Industrial Workers (CPI-IW).

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The DA hike will have a significant impact on the disposable income of the employees and pensioners, as it will increase their take-home pay and pension. This will come as welcome news for them, especially in light of the economic challenges posed by the pandemic.

The government’s decision to increase the DA reflects its commitment to the well-being of its employees and pensioners. It acknowledges the financial strain that they have been facing due to the rising cost of living and aims to provide them with some relief through the DA hike.

In conclusion, the DA hike for central government employees and pensioners is a positive development that will help them manage their finances better. It will provide them with the much-needed financial support in these challenging times and will contribute to their overall economic well-being. The arrears of the DA will also provide them with some additional financial assistance. This decision by the government is a step in the right direction and is sure to be appreciated by the employees and pensioners.

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