7th Pay Commission Latest News: New DA update! Meeting on June 26; how Central Govt employees' salary will be calculated? Check details

The month of July is going to bring a sigh of relief for the central government employees as their salary is likely to see a good hike. A meeting is scheduled to be held on June 26 regarding the payment of dearness allowance.

A meeting of the officials of the National Council of Joint Consultative Machinery (JCM), the Ministry of Finance and the Department of Personnel and Training (DOPT) is to be held on June 26, 2021. The final decision on the DA is likely to be taken in this meeting after which, payment will be made by adding dearness allowance in the salary of July.

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The payment of dearness allowance of central government employees has been stopped since January 2020. That means a total of three installments need to be paid. However, it is not yet clear if the money of these three installments will be given together or not.

This is how DA will be paid!

If sources are to be believed, the payment of DA will be done in three installments only. That is one installment can be given in July followed by the second in August and the third in September. In this way, DA for the last 18 months will be paid. At the same time, the DA of June 2021 can be announced between October and December.

How is CTC calculated?

According to the Finance Ministry, the outstanding installments of dearness allowance for employees will be included in the revised rates from July 1, 2021. Dearness allowance is given to the employees twice a year from January to June and again from July to December to get beat the inflation.

To fix the DA, the government estimates the average inflation in 6 months. With the increase in DA, there is also an increase in Travelling Allowance (TA). Similarly, House Rent Allowance (HRA) and Medical Compensation are decided. The CTC of the central government employee is decided including all the allowances.

Will there be an increase in salary in July?

Since January 2020, the payment of DA of central government employees has been stopped and a total of three installments have to be given to them. The money of these three installments can be given simultaneously which means that in July, there will be a bumper increase in the salary of central government employees. At the same time, the DA stopped for the last 18 months will also be paid and after this, the dearness allowance of the employees will increase to 28 percent, from the current 17 percent.

How much can the salary increase?

Under the 7th Pay Commission, the minimum salary of central government employees is Rs 18000. In this, 15 percent dearness allowance is expected to be added that is Rs 2700 per month will be directly added to the salary.

On an annual basis, the central government employees will get a total benefit of Rs 32400 in DA. According to government sources, the dearness allowance for June 2021 will be slightly delayed. But, that too is expected to increase by 4 percent. Which means that it can also be paid by October. At that time the dearness allowance will increase to a total of 32 percent.