The recent decision by Pirme Minister Narendra Modi-led government at the Centre over Dearness Allowance (DA) hike and Dearness Relief (DR) brought cheers to lakhs of government employees and pensioners.
PM Modi chaired Cabinet Committee recently decided during a meeting to increase the DA and DR of Central government employees from 17 per cent to 28 per cent. As per the Union government, the revised slabs will come with effect from July 1, 2021.
7th Pay Commission Salary, DA, DR: Latest News
1. Earlier, three additional instalments of DA which were due from 01.01.2020, 01.07.2020 and 01.01.2021, were frozen by Central government due to COVID-19 pandemic.
2. “In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen, the Cabinet said in a statement on July 14.
3. While, the DA have been hiked, the central government has mentioned that “the rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%.” “The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%,” the cabinet stated.
How much hike in salary a Centreal government employee will get after DA hike?
Before the DA hike decision, Central government employees were getting a DA of 17 per cent of the Basic Pay. Now, after the 11 per cent hike, they will receive 28 per cent of the basic pay.
As per the recommendation of 7th Pay Commission, the Central government employees would receive the minimum basic pay of Rs 18,000 at the entry-level. When the DA rate was 17 per cent of basic pay, such central government employees were receiving the dearness allowance of Rs 3,060 and after the DA hike, they will get get dearness allowance of Rs 5,040. This will be equal to a significant increase in monthly take-home salary.