New Delhi: 7th Pay Commission latest update – The Finance Ministry has issued an order to implement the Cabinet decision to hike Dearness Allowance for central government employees to 28 per cent from July 1. The decision will benefit more than 48 lakh central government employees, and 65 lakh pensioners.
On July 14, the Cabinet Committee chaired by Prime Minister Narendra Modi had approved increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension.
In an office memorandum, the Department of Expenditure under the Finance Ministry said the DA payable to central government employees shall be enhanced from the existing rate of 17 per cent to 28 per cent of basic pay. The increase subsumes the additional instalments arising on January 1, 2020; July 1, 2020, and January 1, 2021.
“These orders shall also apply to the civilian employees paid from the Defence Services Estimates,” it said, adding for Armed Forces personnel and Railway employees separate orders will be issued by the respective ministries.
In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen.
Now, the Government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%.