What is it?
According to reports, Centre may soon reinstate Dearness Allowance (DA) hike for its employees this year. Last year, Centre postponed the DA hike due to Covid induced economic slowdown.
How much hike is expected?
Reports claimed that central govt employees are likely to get 4 per cent DA hike this year. The hike is as per the formula set by the 7th Central Pay Commission.
Who will benefit?
The Dearness Allowance hike would benefit about 48 lakh central govt employees and over 60 lakh pensioners. This means that while working employees will see an increase in their salaries, retired employees will get a higher pension after the DA hike.
Is this unusual?
No. Centre usually hikes DA twice a year to compensate employees due to rising prices owing to inflation. Last year, it had stalled the DA hike due to economic slowdown as a result of Covid 19 pandemic and the lockdown thereafter.
When will it happen?
As of now, Center has not formally announced the DA hike. However, reports claimed that the govt can start awarding 4 per cent hike from January itself or from July 1, 2021.