New Delhi | Jagran Business Desk: The year 2021 is likely to bring a bag full of perks for central government employees and pensioners. According to media reports, the Centre is expected to increase the dearness allowance by 4 per cent from this month which means that more money will be credited to the salary accounts of employees.

The increase in dearness allowance is likely to be in accordance with the accepted formula, based on the recommendations of the seventh Central Pay Commission.

Notably, in March 2020, the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved to release an additional instalment of DA to central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2020.

The finance ministry had then informed that there will be an increase of 4 per cent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.

The hike in DA and DR will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). The decision will benefit 48.34 lakh central government employees and 65.26 lakh pensioners.  

Under the 7th CPC, the central government has reportedly also decided to extend the ‘disability compensation’ to all its employees. Those who get disabled in the line of duty but are still retained in service will be eligible to avail benefit of the scheme.

On January 1, Union Minister Jitendra Singh had said that the change will bring a huge relief to the young Central Armed Police Force (CAPF) personnel including Central Reserve Police Force (CRPF), Central Industrial Security Force (CISF), Border Security Force (BSF), among others. 

The earlier provision for disability benefits under the Central Civil Services (CCS) (EOP) rules did not give compensation to the employees who got appointed on or after January 1, 2004 and were covered under the National Pension System (NPS).

Now, the government servants covered under the NPS will receive the benefits under Rule (9) of Extraordinary Pension (EOP), after the new order was issued by the Department of Pensions in the Ministry of Personnel.

Posted By: Abhinav Gupta