New Delhi, July 16: For central government employees and pensioners, who get salaries and pensions as per the recommendations of the 7th Pay Commission or 7th CPC, the ongoing week brought some relief as well as bad news. The relief is that the Centre has hiked dearness allowance (DA) and dearness relief (DR) to 28 percent with effect from July 1. The bad news is no arrears shall be paid. 7th Pay Commission Latest News Today: DA Hiked to 28%, Here's How Much a Central Government Employee's Salary Will Increase.
The Centre on July 14 approved restoration of full benefits of DA and DR for central government employees and pensioners from July 1. It means the three previously-announced hikes in DA and DR, under the 7th Pay Commission, will come into effect from July 1. Currently, DA and DR are fixed at 17 percent of basic pay or pension. The Centre had approved a 4 percent hike in DA and DR last year. This was to be effective from January 1, 2020.
There was another increase of 3 percent, which was to be effective from July 2020, and in January 2021, the dearness allowance was hiked once again by 4 percent. However, these benefits were suspended last year when the coronavirus pandemic struck the country.
Now, central government employees and pensioners will get DA and DR respectively at 28 percent of their basic pay/pension, under the 7th Pay Commission. This came as a big relief for central government employees and pensioners. However, they would be disappointed with the Centre's decision on arrears.
The government has made it clear that it won't pay arrears. "The rate of dearness allowance/dearness relief for the period January 1, 2020 to June 30, 2021 shall remain at 17 percent," said the government. The two developments assume significance. The hike in DA and DR will certainly increase monthly income and pension of central government employees and pensioners.
(The above story first appeared on LatestLY on Jul 16, 2021 03:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).