PERSONAL FINANCE
The DA of these employees was also frozen from April 2020 due to the COVID-19 pandemic and it was resumed from July 1 this year.
7th Pay Commission: The Dearness Allowance (DA) of central employees has increased to 28 percent under the 7th Pay Commission. After this DA hike, the Mod Government has also given a gift to the central employees taking salary under the 6th Pay Commission. There has been a big increase in the dearness allowance of the employees of the Central Autonomous Bodies, which will give a huge jump in their salary.
Notably, the DA of these employees was also frozen from April 2020 due to the COVID-19 pandemic and it was resumed from July 1 this year.
The Dearness Allowance of these central government employees has been increased by 25 percent, taking it up to 189%. Till now, they were getting DA at the rate of 164 percent. The new DA will be applicable from 1st July 2021. However, no arrears for one and a half years will be available.
As per the statement of Director Nirmala Dev in the Finance Ministry, this order has been issued for all Central Government Offices, which are currently paying salary under the sixth pay commission. A copy of this order has been sent to other departments including CAG and UPSC.
The effect of DA is also visible on the house rent allowance. HRA has been increased to 27 percent, 18 percent and 9 percent under the 7th Pay Commission in the X, Y and Z categories respectively. The employees living in cities under X category will now get more HRA, followed by the Y and Z categories.
At the same time, the central employees are now waiting for the announcement of dearness allowance for June 2021. The DA hike for June 2021 is expected to be 3 percent. This way, the DA of central employees will reach 31 percent. In June, the AICPI data had increased by 1.1 points, due to which the index has reached 121.7. This means DA should be 31.18 percent. However, it will remain 31 percent in the round figure. The government may announce it soon.
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