The 7th Pay Commission Diwali bonanza is out, the Central Government, on Thursday approved an increase of 3 percentage points on the Dearness Allowance (DA) Dearness Relief (DR) for central government employees and pensioners from 28%.
Post this hike, the DA will increase to 31%. While addressing the media, Union Minister Anurag Thakur said that the hike comes into effect from 1 July, 2021
The new 7th Pay Commission hike comes just days ahead of Diwali and is aimed to benefit over 47 lakh employees and 68.62 lakh, pensioners. “The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum,” the government said in a statement
7th Pay Commision Highlights
Cabinet approves release of an additional installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensions, due from 01.07.2021
- An increase of 3% over the existing rate of 28% of the Basic Pay / Pension
- This will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners
- Impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.9,488.70 crore per annum
Earlier in the day, the Union Cabinet approved the 7th Pay Commission Recommendations a 3 per cent dearness allowance (DA) and dearness relief (DR) hike for central government employees and pensioners. The DA and DR hike was approved by the Union Cabinet after a meeting was held earlier in the day. It is a welcome development for central government employees and pensioners.
The increase of 3 per cent is over the existing rate of 28 per cent of the basic pay/pension. The move will benefit about 47.14 lakh Central government employees and 68.62 lakh pensioners. It will cost the exchequer Rs 9,488.70 crore per annum.
Though the DA was restored recently, the Central government is yet to pay the increased dearness allowance (DA) for the month of July and August 2021.
7th Pay Commission ; Deareness Allowance Arrears
DA Arrears: Even though the DA was restored recently, the Central government is yet to pay the increased dearness allowance (DA) for the month of July and August 2021. The government had recently said that the employees will receive salaries with increased DA starting from July 2021.
7th Pay Commission: Provident Fund Interest
PF Interest: In the meantime, over 6 crore Central government employees and pensioners who are the account holders of the Employees’ Provident Fund Organisation (EPFO) can also receive good news before Diwali. Reports claim that the EFPO subscribers can receive the interest money on their investments direct in their bank accounts in this festive season. Reports claimed that the EPFO could soon announce the transfer of interest to the accounts of its subscribers for 2020-21 period.
Meanwhile, The Central government employees belonging to the India Post department will get only half bonus this Diwali. As per updates, the Central government had refused to grant them 120 days bonus.
The dearness allowance of the central government employees has been raised by 4 per cent in January 2020, by 3 per cent in June 2020 and by 4 per cent in January this year. With an increase of 3 per cent in July and the pending hike, the DA for central government likely to jump to nearly 31 per cent.