The Department of Expenditure under the Union Ministry of Finance in its latest office memorandum issued on October 25 has stated that the term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the government but does not include any other type of pay like special pay, etc.
It needs mentioning here that the enhanced Dearness Allowance (DA) payable to the Central government employees shall come into effect from July 1, 2021.
The Modi government has increased the DA to 31 per cent of the basic pay from 28 per earlier. “The Dearness Allowance will continue to be a distant element of remuneration and will not be treated as pay within the ambit of FR 9(2),” the office memorandum said.
These orders shall also apply to the civilian employees paid from the Defence Services, while in respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Defence and Railways Ministry, respectively.
On October 21, the Union Cabinet chaired by Prime Minister Narendra Modi had approved the release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners.
The hike is an increase of 3 per cent over the existing rate of 28 per cent of the basic pay and pension. The decision will benefit about 47.14 lakh Central Government employees and 68.62 lakh pensioners in the country.
(Edited By Sanjeev Patro)