7th Pay Commission latest news: Modi govt's big relief on Dearness Allowance coming in January? Details here

Central government employees may get bag full of good news this new year.

New Delhi: The new year 2021 seems to be carrying a bag full of good news for central government employees and pensioners.

It has been reported in the media that the central government employees are expected to get four percent increase in dearness allowance which is expected in January 2021. This increase is expected to be in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

It may be recalled that in March 2020, the Union Cabinet, chaired by the Prime Minister, Narendra Modi had approved to release an additional instalment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.  There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise, the Ministry of Finance had informed.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief was fixed at Rs 12,510.04 crore per annum and Rs 14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). The decision benefits about 48.34 lakh Central Government employees and 65.26 lakh pensioners.

Meanwhile, last week, the Modi government decided to extend "Disability Compensation" for all serving employees, if they get disabled in the line of duty while performing their service and are retained in service in spite of such disablement.

The order will particularly provide a huge relief to young Central Armed Police Force (CAPF) personnel like  CRPF, BSF, CISF, etc since disability in performance of duties is generally reported in their case due to constraints of job requirement as well as hostile or difficult work - environment.