7th pay commission latest news: Understanding central govt employees' DA, what will happen to June 2021 Dearness Allowance? EXPLAINED
The wait of Central government employees ended on Wednesday when Prime Minister Narendra Modi-led government announced good news for them in the form of Dearness Allowance (DA).
The good thing about the announcement was that they will get hiked DA from July itself instead of September as reported earlier.
DA decision taken by Cabinet Committee chaired by PM Modi
The Cabinet Committee chaired by Prime Minister Narendra Modi on Wednesday approved an increase in Dearness Allowance (DS) to Central Government employees and Dearness Relief (DR) to pensioners. Source: PTI
DA, DR hike percentage and restoration dates
As per an PIB release, the increased DA and DR, which will come into effect from July 1, will be 28 per cent representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay/Pension. Source: PTI
DA-freeze background
In view of the unprecedented situation which arose due to the COVID-19 pandemic, Cabinet had decided to freeze three additional instalments of DA to Central Government employees and Dearness Relief DR to pensioners, which were due from January 1, 2020, July 1, 2020, and January 1, 2021. Source: PTI
DA to be given at 28 per cent
"Now, the government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from July 1 to 28 per cent representing an increase of 11 per cent over the existing rate of 17 per cent of the Basic Pay/Pension," the release said. Source: Reuters
DA to remain 17 per cent till June 30
The increase reflects the additional instalments arising on January 1, 2020, July 1, 2020, and January 1, 2021. The rate of Dearness Allowance/Dearness Relief for the period January 1, 2020, to June 30, 2021, shall remain at 17 per cent," it added. Source: PTI