7th Pay Commission News: Latest updates on Central government employee's salary, PF and more

The Union Cabinet on July 14 had announced that the Dearness Allowance (DA) and Dearness Relief (DR) will be increased for the Central government employees after a gap of one-and-a-half years from 17 per cent to 28 per cent. This will be effective from July 2021.

Notably, this comes at a time when retail inflation has remained over six per cent for two straight months. 

Here are some other latest developments that will benefit the Central government employees: 

Hike in take-home salary

With the increase in the percentage of DA, the Finance Ministry also said that the revised rate will come into effect from July 2021. After this announcement, a central government employee who generally gets Rs 18,000 per month, will see a hike of 11 per cent in his take-home salary. His salary will increase by Rs 5,040 from July. 

Provident Fund (PF) and Gratuity

Since the Dearness Allowance is linked to the Basic Salary of the Central government employees, a hike in DA will automatically increase the amount of Provident Fund (PF) and gratuity. With this, the Travel Allowance will also increase for employees and pensioners. 

Pension slips on WhatsApp

The Centre has ordered the banks to use social media apps such as WhatsApp alongside SMS and email to send pension slips to pensioners after their account is credited. This order was issued by the Department of Pension and Pensioners’ Welfare. 

Leave Travel Allowance (LTA)

The Centre had extended the deadline for the submission of LTA beyond May 31 for the benefit of the central government employees. Many employees were unable to submit the bills due to the coronavirus pandemic second wave, which was at its peak in May. Therefore, the Ministry of Finance took this decision to ease the process and help central government employees receive their money.