7th Pay Commission: Government may provide dearness allowance hike, but you should know when

7th Pay Commission: Central government employees and pensioners have had to face disappointment on Dearness Allowance (DA) this year as the government decided to pay them at the older rate due to coronavirus crisis. These employees were entitled for DA at the new rates, however, in April, the government decided not to implement the new rate.  

This decision to not to give DA on new rate is in effect from January 2020 to June 2021, meaning there won’t be an increment in DA of these employees and pensioners during this period. So, it can happen only after this date. 

The DA is revised twice in a year—January and July. However, the government decided against it due to impact of coronavirus on the central government’s treasury.  So, any relief for employees is very much likely after June 2021. 

These employees and pensioners have been waiting for long for the government to announce something on 7th pay commission based DA, but it appears any development on this front will be done only after June 2021. 

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Currently, the government is paying DA to employees at 17 per cent, while the employees are entitled for 21 per cent. 

So all those staffers who are drawing salary as per 7th pay commission, any clarity on this front from government side can be expected only after June 2021. However, in a breather to 30 lakh non-gazetted employees, the government had announced Diwali bonus for them.