7th Pay Commission: After a gap of almost one and a half years, the Central Government has increased Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners. Dearness Allowance and Dearness Relief have been increased to 28 per cent from the existing 17 per cent. The new rate will be effective from July 1.
To fight the nationwide coronavirus pandemic, the central government withheld dearness allowance benefits for employees till June 30, 2021. The Finance Ministry had earlier mentioned that any hike in DA due on revision on July 1, 2021 will take into account the previous hike. Well.
About 48 lakh central government employees and 65 lakh pensioners will be benefited by this latest move. This will cost the government an additional Rs 34,401 crore.
Everything you need to know about DA Hike, DA Dues and Salary Calculation:
1) The government has restored three installments of Dearness Allowance and Dearness Benefit payable in the last one and a half year- 4 per cent on January 1, 2020, 3% per cent on July 1, 2020 and 4 per cent on January 1, 2021.
2) Dearness Allowance is a component of the salary of government employees and pensioners. To deal with rising inflation, the central government revises DA and DR benefits twice every year in January and July. DA varies from employee to employee based on whether they work in urban area, semi-urban area or rural area.
3) Central government employees have got 17 percent DA till 30 June 2021. Now DA has been revised to 28% with effect from 1st July 2021. If a government employee gets Rs 18,000 per month, his take-home salary will be increased by 11 per cent or Rs 5,040 from July.
4) It is to be noted that the government will not pay any dearness allowance arrears for the period between January 1, 2020 and June 30, 2021. “#Cabinet approves restoration of three installments of Dearness Allowance and Dearness Relief with effect from 01.07.2021. Represents an increase of 11% over the existing rate of 17% of Basic Pay/Pension. No arrears will be paid for the period from 01.01.2020 to 30.06.2021, said Jaideep Bhatnagar, Principal Spokesperson of the Government of India and Principal, Press Information Bureau.
5) “This increase reflects the additional installments arising on 01.01.2020, 01.07.2020 and 01.01.2021, which were earlier frozen due to the COVID pandemic situation. The DA/DR rate will remain at 17% for the period from 01.01.2020 to 30.06.2021,” explained Subodh Sadana, Partner, Anant Law.
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