7th Pay Commission: Central government employees' salary, allowance update—what will change from July

7th Pay Commission updates: Come July and central government employees could see massive jump in their salary. What's ensured is DA hike, increase in DR and changes in salary. Travel allowance and night duty allowance can also become reality for certain segment of government employees. With the Modi government recently announcing restoration of three pending DAs of the central government employees beginning July 1, central government employees can't wait to see how their salary structure will change. Let's understand these factors one by one.  

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Central government employees DA Calculation:
Last year, the government had frozen central government employees DA. Currently, central government employees get DA at 17 per cent. It is expected that final DA that central government employees will get is 28 % (17% + 11%). As per 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. This makes for 11 % hike and final DA turns out to be 28 per cent.  

DR hike for pensioners  

Since hike in DA, DR (Dearness Allowance) goes hand in hand. DR will also increase proportionally for lakhs of central government pensioners.  

Central government employees TA  
Travel Allowance (TA)will be extended later when DA will be added to salary with pending arrears. After the increase in DA, the monthly PF and gratuity contribution of central employees will also change. However, it must be noted that the government has not committed anything on arrears.  

Central government employees night duty allowance
Night duty allowance for a section of central government employees is also expected to come into effect from July. Earlier, as per the recommendations of the 7th Pay Commission, the Department of Personal and Training (DoPT) had issued guidelines in the first half of the last financial year regarding night duty allowance. Though, all sorts of allowances are put on hold in the onslaught of the COVID-19 pandemic, it is expected that the news on hike in DA and DR in July will also bring clarity on hike in night duty allowances.