The central government employees are all set to get full Dearness Allowance (DA) benefit from July this year with an expected 11% hike in the allowance as per the 7th Pay Commission recommendations.
Anurag Thakur, the Minister of State (MoS) for Finance, has informed about the same in a written reply in Rajya Sabha. He said that the three pending DA installments of the CG employees will be ‘subsumed’ and the revised DA rates will be effective from 1st July 2021.
“As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021,” Thakur told in the Upper House.
Earlier, it was believed that the recent surge in COVID cases in the country might pose a hindrance in the DA hike. However, the announcement made by Thakur has come as a big relief to over 50 lakh central government employees whose DA was freezed by the centre in March last year till June this year to cope with the financial crisis following the COVIID pandemic.
7th Pay Commission: 11% Hike In DA?
The CG employees are presently getting DA at 17%. So, as per the All India Consumer Price Index (AICPI) data, a 3% increase in DA from January to June 2020, a 4% hike for July-December 2020, and a 4% increase from January-June 2021, are expected.
If the DA is hiked as per the above mentioned expectations, the present DA rate (17%) will increase by 11%, taking the Dearness Allowance to 28% for the central government employees.