7th Pay Commission: Increased salary will start coming in the accounts of millions of central employees and pensioners soon. The government has said in Parliament that their stalled dearness allowance (DA) and dearness relief (DR) will be resumed from 1 July 2021.
New Delhi: 7th Pay Commission: Increased salary will start coming in the accounts of millions of central employees and pensioners soon. The government has said in Parliament that their stalled dearness allowance (DA) and dearness relief (DR) will be resumed from 1 July 2021. The dearness allowance, which is currently available at the rate of 17 per cent, can be increased by 11 per cent. That is, it is expected to be 28 percent straight. Understand how?
Dearness allowance will be 28 percent
Let us tell you that in view of the corona epidemic, the DA and DR of central employees and pensioners on 1 January 2020, 1 July 2020 and 1 January 2021 was stopped. Now the government has made it clear that on July 1, 2021, they will be started back at revise rates. Big relief is news for millions of central employees and pensioners. According to the reports published in media reports, right now the employees get DA, DR at the rate of 17 percent, it can increase to 28 percent.
Increase in DA will also benefit
Let us tell you that only last month, Minister of State for Finance Anurag Thakur had told in a written reply in Rajya Sabha that from July 1, all employees of the Central Government will get full benefit of DA. They will also get the benefit of the increase in DA along with the freezed DA from January to June 2021.
28% DA DA Mathematics
From July 1, there will be a huge jump in the salaries of central employees and pension of pensioners. The latest data from the AICPI (All India Consumer Price Index) reported that at least 4% DA is estimated for the period from January to June 2021, according to a report published in media reports. It is expected that 3% DA for January to June 2020 and 4% DA announced from July to December 2020 will also be added to the existing DA of Central employees, which is currently 17%. That means the total (17 + 4 + 3 + 4) will be 28 percent DA.
Family pension increase
A few days ago, the central government had announced to increase the maximum limit of family pension for government pensioners. The central government has increased the maximum limit of family pension by almost two and a half times. Till now the maximum limit of family pension was Rs 45,000 per month. Now it has been increased to Rs 1.25 lakh per month.
After the reinstatement of DA, the provident fund (PF) of central employees will also increase. It is worth noting that the calculation of PF contribution of central employees is done by the basic salary plus DA formula.
