7th Pay Commission: Good news is finally here for central government employees! The Dearness Allowance (DA) of central government employees is going to increase from July 1, 2021. The dearness allowance will get increased to 28% from 17%, leading to an impressive hike in the salaries of the employees.
Pending installments to be given
Apart from this, another good news for the employees is that they will also be paid the three pending installments. DA is currently paid at the rate of 17 percent to central government employees. When the DA will increase to 28 percent, then obviously there will be a tremendous increase in the salary of the employees.
The employees are going to get the benefit of two years DA directly, because the dearness allowance of the central government employees had increased by 4 percent in January 2020, then there was an increase of 3 percent in the second half i.e. in June 2020. In January 2021, the dearness allowance increased once again by 4 percent. That means the total has gone up to 28 percent. However, these three installments have not yet been paid.
How much salary will increase
As per Zee Business, currently, the minimum salary according to the pay matrix of central employees is Rs 18,000. Overall, a 15 percent dearness allowance is expected to be added to the salary, which will roughly translate to an increase of Rs 2700 per month. On annual basis, the total dearness allowance will increase by Rs 32,400.
4% DA to be increased in June as well
The government is yet to announce the dearness allowance of June 2021. Harishankar Tiwari, former president of AG Office Brotherhood and president of Citizens Brotherhood, told Zee Business that by June 2021, DA is expected to rise by 3-4 percent. With this hike, dearness allowance will increase to 32% after June 2021.
Arrears will not be paid
Last year due to Covid-19, the government froze the dearness allowance from 1 January 2020 to 1 July 2021. Dearness relief, (DR) for pensioners will also not increase till 1 July 2021. With this decision, the government has saved a total of Rs 37000 crore in the financial year 2021-2022. However, the central employees demand that they should be paid arrears from 1 January onwards. But, the central government has made it clear that arrears will not be paid.