7th Pay Commission Latest News: Big benefit on Dearness Allowance (DA), Dearness Relief (DR) coming for central government employees, pensioners?

7th Pay Commission Latest News: Central Government Employees are eagerly waiting for the Dearness Allowance (DA), which has been due from as far back as January, 2021. According to the All India Consumer Price Index (AICPI) data release, one can expect at least 4 per cent DA hike for January to June, 2021 period. But, the double bonanza is also there as Center is expected to restore DA from 1st July because they have put DA hike on hold. This will be good news for the retired central government employees too as their Dearness Relief (DR) benefit will also get restored with DA restoration. In that case, it will be good news for around 52 lakh central government employees and around 60 lakh pensioners of the central government.

7th CPC: DA Arrears

After DA restoration, central government employees DA will jump from existing 17 per cent to 28 per cent (17 + 3 + 4 + 4). This includes 3 per cent DA announced for January to June 2020, 4 per cent DA announced for July to December 2020 and 4 per cent DA expected for January to June 2021.

Seventh Pay Commission: Pay Hike

As central government employees salary is decided by the fitment factor (which is 2.57) multiplied by basic salary plus DA. When the DA will jump from 17 to 28 per cent, a central government employee's salary is bound to jump. Apart from that they will be given three installments of the DA arrears too.

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DR benefit for pensioners

Like central government servants, pensioners will also get the benefit of the DR restoration as their pension will jump in the same manner the way a central government employee's salary will grow. After the DA announcement, their DR will go up and in that case their monthly pension will go northward and they will also get arrears for the three installments of their DR.