7th Pay Commission: Center increased dearness allowance (DA) as well dearness relief (DR) for all of it central government employees. The DA which was earlier 17 per cent has now been increased to 28 per cent which will be effective from July. According to reports, there are also indications that the government may approve dearness allowance for June as well. The report said that the Center may soon approve a 3 per cent hike in DA as well. It was also mentioned that according to some experts this announcement is likely to come soon. If this happens, it would mean that there will be an overall increase in dearness allowance for central government employees which will stand at 31 per cent along with a possible hike in pay.
The last dearness allowance hike was in January 2020, where the government increased it to 4 per cent, followed by a 3 per cent hike in June of the same year. This trend lasted till January 2021 and DA once again witnessed an increase of 4 per cent. If it rises again, it will reach the level of 31 per cent.
However, the government will not pay any DA dues for the period between January 1, 2020 and June 30, 2021. With the change in DA rates, it will cross nearly 48 lakh central government employees and 65 lakh pensioners. Country. In the light of these changes, there were some states which increased the DA rates for their respective states. These states include Uttar Pradesh, Jammu and Kashmir, Jharkhand, Haryana, Karnataka and Rajasthan.
Earlier, to give some relief to its employees, the Center increased the Variable Dearness Allowance (VDA), which put it in the range of Rs 105 to Rs 210 per month. The rates were effective from April, 2021. Its aim was to benefit about 1.5 crore workers at that time.
“It shall be for scheduled employment in the Central Sector and shall apply to establishments under the authority of the Central Government, railway administration, mines, oil fields, major ports or any corporation established by the Central Government. These rates are equally applicable to contract and casual employees/workers, the Ministry of Labor and Employment said in a statement.
Subodh Sadana, Partner, AnantLaw was quoted as saying, “This is a welcome relief to the Central Government employees in force in this time of second wave of pandemic. This will also enhance the provident fund, gratuity and other benefits directly linked to DA.”
Before all these changes came into force, it should be noted that there was a temporary moratorium on DA for about 18 months. Central government employees and pensioners can also outline the possible increments as per their basic pay grade.
Dearness Allowance is a significant part of the salary of an employee working for the government. It serves the purpose of helping the said employee or pensioner in that case to deal with the rising rates of inflation. The DA and DR rates for central government employees are revised and announced twice every year. Once in January and again in July. The DA that Central Government employees or pensioners can expect completely depends on their field of work. It can be employment in urban area, semi-urban area or rural area.
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