da news | 7th pay commission DA: Big gift to central employees, pensioners dearness allowance increased from 17% to 28%

New Delhi: Lakhs of central government employees have got a big relief. The Union Cabinet chaired by Prime Minister Narendra Modi has today (July 14) approved to increase the Dearness Allowance (DA) to the employees from 17% to 28%. Explaining the cabinet decision, Union Minister Anurag Thakur said that Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will come into effect from 1 July 2021.

Thakur said that 48.34 lakh central government employees and 65.26 lakh pensioners would benefit from this step. The government has decided to increase the DA for central employees and DR for pensioners with effect from July 1, a statement said. Under this, an increase of 11 percent has been made on the basic pay / pension at the existing rate of 17 percent. Now it has increased to 28 percent.

The Union Cabinet has approved the restoration of three installments of DA and DR with effect from July 1, 2021. But according to the Press Information Bureau (PIB), it has also been said that no arrears will be paid for the period from January 1, 2020 to June 30, 2021. That is, the rate of dearness allowance / dearness relief during this period will remain the same at 17%.

Due to increase in dearness allowance, an additional burden of Rs 34401 crore will increase annually in the expenditure of the government. It is to be noted that last year the Center had banned the DA and DR of central employees and pensioners. Other expenditures were put on hold due to the fall in government revenue collection and increased focus on spending on social welfare schemes due to the outbreak of the Kovid-19 pandemic.

Till now three installments of DA were pending – 4% from 1st January 2020 to 30th June 2020, 3% from 1st July 2020 to 31st December 2020, 4% from 1st January 2021 to 30th June 2021. With the restoration of DA, central government employees will also get a big jump in their take-home salary, provident fund contribution (PF) and gratuity.

How much additional amount will be received by the Central Government employee after DA restoration, can be calculated in this way as we all know that the minimum grade pay of Level-1 employee under 7th CPC is Rs 1800 and his basic pay is Rs 18,000. 56,900 is Rs. So at the entry level, taking into account the deduction of provident fund and tax to an employee with a basic salary of Rs 18,000, the take at home salary will increase by Rs 1,980!

What is Dearness Allowance?

Dearness allowance is a part of salary. It is a fixed percentage of the basic salary of the employee. As inflation increases, so does dearness allowance. Its benefit is given to the employees and pensioners. Dearness Allowance was first introduced in India in 1972.