7th Pay Commission: Big Holi gift coming for central government employees? DA, DR, arrear clearance, salary hike EXPLAINED

7th Pay Commission Latest News: The Modi government is planning to increase DA of the central government employees, who have been waiting for increase in their Dearness Allowance since last few months. It is reported that the government will increase DA of central government employees by 4 percent, taking the total DA to 21 per cent, before Holi. It is also learnt that Modi government is mulling to clear 4 per cent arrear of the central government employees, which will take their total DA to 25 per cent.  

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As per the AICPI data, the Narendra Modi Government may announce 4 per cent DA for January to June 2021 period that means their DA would become 25 per cent of their basic monthly salary (17+4+4) once the DA is restored. As an additional 4 per cent DA for July to December 2020 is still not added in their monthly salary.    

According to the 7th Pay Commission rules, central government employees Travel Allowance (TA) will automatically rise once the DA is announced. So, the central government employee's monthly salary will grow many folds once the DA is announced.    

Like central government employees, around 58 lakh retired central government pensioners are waiting for the Dearness Allowance (DA) announcement as it is directly linked to their Dearness Relief (DR). They are also expected to get the same kind of monthly pension hike once the DR is restored.    

Under the 7th CPC, after the announcement of DA, employees will get arrears for late DA announcement. For example, if the DA is announced in February, then they will get arrears for January 2021 month as the DA is meant for January to June 2021 period. This will affect central government pensioners too as their DR is also getting delayed due to late DA announcement by the Modi Government.     

While fighting Coronavirus, the Modi Government decided to freeze DA and DR till June 2021, however, some media reports suggest that it might be restored before June 2021. So, both central government employees and pensioners are eagerly waiting for such good news from the Modi Govt as it will increase their monthly salary and pension manifold.