BUSINESS
Due to the corona epidemic, three installments of DA for central employees and pensioners were withheld on 1 Jan 2020, 1 July 2020, and 1 Jan 2021.
In a big relief for Central government employees and pensioners, the Narendra Modi government had announced in March that central government servants (CGS) will be given their full Dearness Allowance, along with three months' pending dearness allowance.
Minister of State (MoS) for Finance, Anurag Singh Thakur has said that the three installments of dearness allowance will start to be paid. from July 1, 2021.
In a written reply in then Upper House of Parliament regarding the payment of DA, Anurag Thakur stated the three pending DA installments of the Central Government Servants will be 'subsumed' and the revised DA rates will become effective from 1st July 2021.
Due to the Corona epidemic, three installments of DR for central employees and pensioners were withheld on 1 January 2020, 1 July 2020, and 1 January 2021.
The announcement made by Thakur comes as a big relief to 52 lakh central government employees as the centre has freezed DA benefit of employees till June 2021.
"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," MoS Finance Anurag Thakur told in the Upper House.
The Seventh Pay Commission has announced the new Pay Matrix. With the help of Pay Matrix, central employees will be able to assess the growth during the entire career at the beginning of their career.
A separate Pay Matrix has been prepared for Civil Employees, Defense Forces, and Military Nursing Service (MNS). Now, based on this, the salary of the employees will be increased.
Central employees and pensioners are currently getting a 17% dearness allowance which may now jump to 28% leading to a huge rise in the employee’s 7th CPC salary.
The restoration of DA will bring relief for 65 lakh retired central government pensioners as well. Once the DA is restored, the Dearness Benefit (DR) for pensioners will also be restored which will lead to an increase in the central government employees' pension as well from July 1, 2021.
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