More than 50 lakh central government employees and more than 65 lakh pensioners will be receiving a hike of up to 28% in their Dearness Allowance, as revealed by the newest updates about the 7th pay commission.
Read on to find out all the details about this hike in the DA for government employees and pensioners!
50 Lakh Central Govt Employees Will Get 28% More DA, Salary In July
In July, more than 50 lakh central government employees and more than 65 lakh pensioners will be receiving a hike of up to 28 percent in Dearness Allowance. This number was previously 17 percent only.
As per the data released by the All India Consumer Price Index (AICPI), at least DA can be increased by 4 percent between January and June 2021.
This also includes a 3 percent increase in DA from January to June 2020, a 4 percent increase from July to December 2020, and a 4 percent increase from January to June 2021. The total DA calculation results in 28 percent.
The 7th CPC Fitment Factor of 2.57 will also be taken into account while calculating the probable hike in monthly salary. For instance, if the monthly basic salary of an employee is Rs 21,000 then his monthly 7th CPC salary hike will be Rs 51,400 (Rs 20,000 x 2.57).
Will Employees Receive Arrears?
As we all know, three installments of DA were frozen on account of the COVID-19 pandemic and the lockdown imposed for all central government employees and DR for pensioners, which were due on January 1, 2020, July 1, 2020, and January 1, 2021.
As per Thakur, “As and when the decision to release the future installments of Dearness Allowance due from July 1, 2021 is taken, the rates of DA as effective from January 1 and July 1, 2020 and January 1, 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from July 1, 2021.”
As we reported to you earlier, any increase in the DA from July 1 will only be effective from that day. This means that employees will not be receiving any arrears on non revision of DA for previous period.
A 4 percent increase for government employees and a 21 percent increase for pensioners was approved by the Union Cabinet, which was to be implemented from January 1, 2020. As of now, Central government employees are being paid DA of 17 percent.