The proposal to hike the DA comes after the 7th Pay Commission had recommended that the DA of government employees be revised twice a year, based on the inflation rate. However, due to the COVID-19 pandemic, the government put a hold on the DA hike last year.
The hike in DA, if approved, will bring good news to around 50 lakh central government employees and 65 lakh pensioners. The proposed hike in DA is expected to be around 4%, which will increase the total DA to 31%.
The decision to hike the DA is being seen as a move to boost the morale of government employees, who have been working tirelessly during the pandemic. The government has also been under pressure to increase the DA, as state governments have already announced a hike in DA for their employees.
The proposed hike in DA is expected to have a positive impact on the economy, as it will increase the disposable income of the employees, which will boost consumer spending.
The decision to hike the DA is eagerly awaited by government employees and pensioners, who have been waiting for a revision in their salaries and pensions. The Centre's decision to increase the DA will provide some relief to them in these trying times.
However, it is important to note that the proposal is still under consideration, and the final decision will be taken by the Union Cabinet. The central government has not yet announced a date for the announcement of the DA hike.
