7th Pay Commission: DA, DR calculation for central government employees, pensioners—Here is what they will get from July 1

7th Pay Commission central government employees DA, DR calculation: The Narendra Modi government had announced that central government employees (CGEs) and pensioners will be getting full benefits of Dearness Allowance (DA) and Dearness Relief (DR), effective July 1. This has led to confusion among central government employees, however, it is expected that they will get 11 per cent raise in DA from the current level. Currently, they are getting DA at 17 per cent after the government had chosen to freeze their DA in the view of Covid 19 pandemic last year. Around 50 lakh central government employees and about 65 lakh pensioners are set to benefit from this move. It is expected that final DA that central government employees will get is 28 % (17% + 11%) 

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DA calculation:  

According to 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. This makes for 11 % hike and final DA turns out to be 28 per cent.  

Also, since the DA and DR are directly proportional in the way they are hiked. Cental government pensioners are also expected to get an increase in their DR on the same line. 

What government said 

Earlier, Anurag Thakur, the Minister of State (MoS) for Finance, had also informed about it in a written reply to Rajya Sabha. Thakur had said three pending DA installments of the central government employees will be ‘subsumed’ and the revised DA rates will be effective from July 1, 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 had said.