There is some good news for lakhs of Central government employees. Under the 7th Pay Commission, the government is going to increase the dearness allowance (DA) of lakhs of employees from July 1, 2021. As per reports, dearness allowance will be increased by 28% from 17%, leading to an impressive hike in the salaries.
Notably, over 50 lakh permanent Central government employees and 65 lakh pensioners across India will be benefitted from the move of the government. Reports also suggest that the Central government is expected to pay the three pending DA installments that were delayed due to the COVID-19 pandemic.
At present, the DA to central government employees is being paid at 17%. Earlier, the dearness allowance of Central government employees was increased only by 4% in January 2020, and then it was 3% in the second half in June 2020, and later by 4% in January 2021.
The reports further mention that after the DA is reinstated, the Dearness Allowance of the Central employees may increase from 17% to 28%. This includes a 3% increase in DA from January to June 2020, a 4% increase from July to December 2020, and a 4% increase from January to June 2021. That means the total DA calculation will be (17 + 4 + 3 + 4) 28%.
Any increase in DA from July 1 will only be effective from that day, meaning the employees would not get any arrears on non-revision of DA for the previous period.
