7th pay commission: DA benefits for central govt staff may resume from September



The central government is likely to restore the 7th pay commission Dearness Allowance (DA) and Dearness Relief (DR) benefits for the central government employees in September 2021. This is a tentative timeline that has been decided in the recent meeting of the finance ministry officials, the National Council of Joint Consultative Machinery and the department of personnel and training, Mint reported. "In our meeting held on 26th June 2021, it has been agreed that central government employees' DA and pensioners' DR benefit will be resumed in September 2021," Shiva Gopal Mishra, Secretary, Staff Side at National Council of JCM has said.

In the run-up to June 26 meeting, hopes were raised that the DA benefits may get restored in July in which case it would be included in July salary. But as of now, the government employees will have to wait at least two months to avail of these benefits. Once the DA and DR are restored, the finance ministry will send the proposal of the salary hike to the Cabinet. After Cabinet's nod, the hike will reflect in the salary.

7th Pay Commission: Dearness allowance types, calculation

In March, finance minister of state Anurag Thakur had informed the Rajya Sabha that three pending installments of DA and DR will be restored from July. In 2020, the government stalled the implementation of the DA hike owing to the Covid-19 pandemic and the central government employees are getting their DA at an earlier rate.

DA is revised twice a year — in January and July. Three increments are due as of now including the hike of January 2020, July 2020 and January 2021. The DA hike of July 2021 will also be added to that.

At present, central government employees get 17 per cent of their basic salary as DA. A 4% hike was announced in 2020 but was not implemented owing to the pandemic. As per the 7th pay commission DA calculation, DA due from January 2021 will be at least 4 per cent while DA getting due from July will be either 3 per cent or 4 per cent. So, when the DA and DR benefit will get resumed, the existing DA will jump from the present 17 per cent to 31 per cent to 32 per cent (17 + 4 + 3 + 4 + 3/4).









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