New Delhi: Lakhs of central government employees, who are eagerly waiting for the hike in Dearness Allowance (DA), will get revised salary from July 1. The government has already said in Parliament that their stalled Dearness Allowance (DA) and Dearness Relief (DR) will be resumed from July 1, 2021. Meanwhile, on the outstanding front, a meeting has been held between the National Council of JCM, the representative body of Central Government Employees (CGS), Department of Personnel and Training (DoPT) and officials of the Ministry of Finance. Posted on 26th June.
A Live Mint report had confirmed the above date of the meeting. It gives ample indication on the outstanding profit on Dearness Allowance (DA) and Dearness Relief (DR).
Last year, due to Corona, the government had banned Dearness Allowance (DA) and Dearness Relief (DR) of employees and pensioners, which is going to be released this time. Now the decision to restore DA from July, 2021 will benefit about 50 lakh central government employees and over 65 lakh pensioners. However, any increase in DA from July 1 will be effective from the same day, which means employees will not get any arrears if they do not revise the DA of the previous period. Therefore, in the meeting to be held on June 26 between the above two parties, a decision will be taken on the outstanding benefits of DA and DR for government employees and pensioners under the recommendation of the Seventh Pay Commission.
Dearness Allowance, which is currently available at the rate of 17 per cent, can be increased to 11 per cent, making the overall percentage increase directly to 28 per cent. According to the All India Consumer Price Index (AICPI) data, the DA could be increased by at least 4 per cent between January and June 2021, media reports said. Reports further said that after the restoration of DA, dearness allowance of central employees may increase from 17 percent to 28 percent. This includes 3 per cent increase in DA from January to June 2020, 4 per cent increase from July to December 2020 and 4 per cent increase from January to June 2021. That is, the total DA calculation will be (17 + 4 + 3 +). 4) 28 percent.
At present the minimum salary as per pay matrix of central employees is Rs 18000. On the existing pay matrix, 15 per cent dearness allowance is expected to be added. Hence, on the existing pay matrix, Rs 2,700 per month will be directly added as DA to the salary. Thus the total Dearness Allowance on annual basis will increase by Rs.32400.
According to some previous media reports, the Central Government employees should take into account the 7th CPC fitment factor of 2.57 while calculating the possible increase in monthly salary. This means that as per the fitment factor of 7th Pay Commission, if an employee draws monthly basic pay of Rs 20,000 then his monthly 7th CPC increment will be Rs 51,400 (Rs 20,000 x 2.57).
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