7th Pay Commission: DA, TA, DR, salary hike—what central government employees and pensioners must know
7th Pay Commission-DA, TA hike, salary increase: Central government employees and pensioners had to face financial hardships during the Covid 19 peak as Dearness Allowance of the former was curtailed, directly affecting the Dearness Relief (DR) of pensioners.
7th Pay Commission-DA, TA, DR, salary hike: Central government employees and pensioners had to face financial hardships during the Covid 19 peak as Dearness Allowance of the former was curtailed, directly affecting the Dearness Relief (DR) of pensioners. However, it appears that the good news on DA, DR, TA, salary hike for the central government employees and pensioners are just around the corner and it may be announced anytime soon. Media reports suggest that it may be well before Holi.
As we know that central government employees' DA was curtailed by the Narendra Modi government to mitigate challenges posed by the Covid 19, it is learnt that government might compensate for the loss period, taking the DA for January to June 2021 at 25 per cent.
See Zee Business Live TV Streaming Below:
This needs to be understood from announcement of All India Consumer Price Index (AICPI). After the announcement of All India Consumer Price Index (AICPI), the central government employees are eagerly waiting for the Dearness Allowance (DA), linked to 7th CPC (Central Pay Commission), for January-June 2021 period. Since DA is directly linked to their Travel Allowance (TA) and arrears, they cannot wait for the announcement to be made by the Modi Government.
Now, since the central government servants (CGS) are waiting for their DA regularization too as their DA has been frozen since July 2020, which is proving to be a hurdle in addition to arrears in their monthly salary.
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.
As per 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.
Modi Government had earlier 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 good news from the Centre as it will increase their monthly salary and pension manifold.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
07:22 AM IST