New Delhi, July 14: Central government employees will now get 28 percent dearness allowance (DA) under the 7th Pay Commission or 7th CPC. The Union Cabinet on Wednesday decided to restore full benefits of DA for central government employees and approved to hike DA to 28 percent from the existing 17 percent. This will certainly increase the take-home salary of central government employees. 7th Pay Commission Latest News: Hike in TA Unlikely for Central Government Employees From July 1, Here's Why.
Under the 7th Pay Commission, currently the DA is fixed at 17 percent. Last year, the government had hiked DA by 4 percent, taking it to 21 percent. This was to be effective from January 1, 2020. There was an increase of 3 percent in June 2020 and in January 2021, the dearness allowance was increased once again by 4 percent. But, the Centre had stopped the release of three previous installments of DA after the coronavirus pandemic began.
7th Pay Commission: Here's How Much Salary Will Increase After DA Restoration
Now, the Centre has lifted suspension on DA benefits, the DA will go up to 28 percent. Subsequently, monthly DA will go up by 11 percent. It means monthly DA of a central government employee will increase by 11 percent of her/his basic pay. As per the 7th Pay Commission salary calculation, if a central government employee's monthly basic pay is Rs 20,000, s/he will get 11 percent hike in his/her monthly DA. It means 11 percent of Rs 20,000 or Rs 2,200.
"Post-DA restoration, the DA will go up to 28 per cent. So, monthly DA will go up by 11 per cent. So, the DA allowance per month of a central government employee will go up to 11 per cent of their basic salary from July 2021," Shiv Gopal Mishra, who negotiated the 7th Pay Commission recommendations with the Centre on behalf employees, was earlier quoted as saying.
(The above story first appeared on LatestLY on Jul 14, 2021 04:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).