7th pay Commission: This is what Centre said about pending DA installments; staffers to get it by 'this' month

The wait of lakhs of central government employees for Dearness Allowance (DA) finally became a reality last month when the Modi Government announced that they will be given full DA benefits soon. This was confirmed by Minister for State for Finance, Anurag Thakur, in a written reply to Rajya Sabha. As per the minister, central government employees will be getting DA benefits from July 1. 

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In much-needed relief, Thakur had said that three pending DA instalments to central government employees will be “subsumed in the cumulative revised rates of DA effective from July 1, 2021. He had had said the central government employees will get full DA benefits, starting July 1, with three pending installments being restored prospectively.  

"As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021," Thakur had told Rajya Sabha in a written reply.

Meanwhile, the announcement also benefits central government pensioners as DA hike is directly proportional to Dearness Relief (DR). Meaning, if the central government employees DA goes up, pensioners DR automatically increases too. With this Modi government move, central government pensioners will also get the arrears on the same line government employees get DA.  

Earlier, the government had frozen DA and DR installments due to the ongoing Coronavirus pandemic. In the process, the government had saved over Rs 37,000 crore during the period.  

“The government saved Rs 37,430.08 crore through the move which helped it deal with the pandemic. The three instalments of Dearness Allowance and Dearness Relief to central government employees and pensioners due from 1.1.2020, 1.7.2020 and 1.1.2021 was frozen in view of the coronavirus pandemic,” the Finance Ministry had said in the Rajya Sabha.