PERSONAL FINANCE
7th Pay Commission: These decisions will provide a huge relief to the central government employees and pension holders.
Central government employees and pensioners are expected to receive a hike in Dearness Allowance (DA) and Dearness Relief (DR). According to the latest updates, central employees will get their enhanced Dearness Allowance and Dearness Relief from September 2021. There are also reports that their dearness allowance will increase from 17 per cent to 31 per cent from September. Not only is that but the Dearness Allowance of three months also expected to come in September itself. In such a case, central employees will get Diwali gifts before Diwali.
DA and DR
The central government employees are expected to get a hike in DA and DR from September. The benefits will be applicable from July 1, 2021. The arrears will be given to the employees and pension holders for the month of July and August. However, no new announcement has been made by the government regarding this yet.
People are also assessing how much the monthly salary will increase after the DA increases. A media report claims that the monthly salary of employees will go up from Rs 3000 to Rs 30,000. Evidently, the monthly salary will increase after the restoration of DA and will depend on the pay scale of the employees.
House Building Advance:
The central government had introduced the House Building Advance (HBA) benefit in June 2020 for government employees who want to construct their houses. Under this scheme, the basic interest rate charged on this HBA is 7.9 per cent and the HBA benefit will remain available till March 31, 2022.
7th pay commission pension benefit:
According to a circular issued by DoPT, the provisional family pension will be sanctioned as soon as the claim is received for Family Pension and Death Certificate from the eligible family member without waiting for other procedures to be complete.
Changes regarding Travel Allowance:
Relief has been given to retired persons by the Central Government. The central government recently extended the time limit to submit TA to 180 days. Earlier the time limit was 60 days. This new rule has come into effect from June 15.
Pension slips through Email, WhatsApp, and SMS:
The Modi government has given great relief to the pensioners. The central government recently directed the banks to issue pension slips to the pensioners through SMS, Email and WhatsApp on their registered contact details. The decision will come into effect from July 1, 2021.