7th Pay Commission: DA, DR hike, salary increase, arrears clearance - Big announcement by Modi government likely this month

7th Pay Commission Latest News: Central government employees wait for Dearness Allowance (DA), which is linked to the 7th pay commission payment system, is likely to end this month. As per media reports, the Modi government would increase the DA for January -June 2021 by 4 per cent from this month. The move will benefit around 50 lakh central government employees. The speculation got momentum after the announcement of All India Consumer Price Index. In further cheer to 61 lakh pensioners, the government would also make a similar announcement regarding hike in Dearness Relief (DR).

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Once decision to this effect is announced, the salary of the central government employees will automatically get increased.

This increase will be based on the recommendation of the 7th Pay Commission. At present, central employees get DA of 17 per cent but if it is increased by 4 per cent, then it can reach 21 per cent. This is the level that has been cleared but the government had frozen it at the earlier amount. So, now they are looking at 17+4+4(approx) mark. 

It is expected that the Centre would soon announce the hike in DA for central government employees. From January to June 2021, the government has to wait for the announcement of DA due to coronavirus pandemic.

However, notably, a demand has also been raised to hike it to 28 per cent seeing as to high inflation is taking a big toll and expenditure is rising in households. 

The economic condition of the country had deteriorated in the wake of COVID-19 pandemic but now it is slowly returning to track. That's why it is expected that the Centre will soon take a decision in the interest of the central employees. The news of 4% increase in DA will create a wave of happiness among about 50 lakh central employees and 65 lakh pensioners.

Earlier, the government had said that the DA of central employees will remain unchanged till 2021 but the recovery in economy has sparked hope that the Centre may revisit its plan.

The Finance Ministry has already said that keeping in mind the basic salary or pension of central employees, DA can be announced. The expenditure of DA and DR (Dearness Relief) is Rs 12,510 crore annually but after the increase it is estimated to reach 14,595 crore.