The Modi government has announced a big increase in the Dearness Allowance of the employees working in the Central Public Sector Enterprises. Their dearness allowance has increased by 12%. This increase has been implemented from 1 July 2021. This increase will include those employees who are getting salary according to the pay scale of Central Dearness Allowance (CDA).
According to Under Secretary Samuel Haque, these employees are getting salary under the 5th Pay Commission (5th Pay Commission). In this, those CPSEs will come, which have not given the benefit of 50% merger of DA with basic pay to their employees. The DA payable to their employees has been increased to 418 per cent from the existing rate of 406%. This increase is effective from 1 July 2021.
Apart from this, those CPSEs will also come, according to Haq, which has allowed the benefit of 50% merger of DA with Basic Pay. The DA payable to their employees is being increased to 368 percent from the existing rate of 356 percent. All the administrative Ministries/Departments of the Government of India have been requested to take necessary action on their behalf.
According to expert Harishankar Tiwari, who calculates dearness allowance, there are many such CPSEs under the central government, where the 7th pay scale is not applicable. There the percentage of dearness allowance is also high. The basic pay was increased in the salary which is made under 7pay matrix. But the basic is less in 5th pay commission and 6th pay commission. The percentage of DA is high. Talking about the gross salary, there is not much difference between the three pay scales.
According to Harishankar Tiwari, the 7th Pay Commission has been implemented from July 1, 2016 and more government employees are getting the benefit of it. The number of such employees in the central government is close to 48 lakhs.
