7th pay Commission Latest News Today: Putting an end to the long wait of the government employees at this pandemic time, the Centre on Wednesday approved a hike in Dearness Allowance (DA) to them from 17 per cent to 28 per cent. The Union Cabinet took the decision to hike the DA after it was put on hold for the last one year due to COVID pandemic.
“The Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will be applicable from July 1, 2021,” Union Minister Anurag Thakur made the announcement.
The Dearness Allowance (DA) for Central Government employees and pensioners has been increased from 17% to 28%. This will be applicable from 1st July 2021: Union Minister Anurag Thakur pic.twitter.com/SCy3AS2hoN
— ANI (@ANI) July 14, 2021
The decision was taken in the Union Cabinet today. Notably, it is the second meeting of the newly reshuffled Cabinet in less than a week. The Joint Council Machinery for Central Government Employees (JCM) headed by the Cabinet Secretary has cleared the proposal for hiking DA and DR already.
Notably, the decision of the Centre is expected to cost the government approximately Rs 34,400 crore and impact around 48,34,000 central government employees and 65,26,000 pensioners.
This decision of the Centre will give a financial boost to lakhs of central government employees and pensioners across the country and enhance their spending ahead of the festive season.
However, the reports suggest that it could take a while for the employees to get the hiked DA as several approvals are required in this regard. For any such delay, the government employees will get arrears accruing from July 1, 2021.
It must be noted that nearly three DA instalments are pending before the hike was approved by the cabinet — one from last year and two from this year. In this way, 11 per cent DA hike has been approved as part of the three pending instalments.
Earlier in the day, it was reported that the Union Cabinet is expected to clear the proposal of giving a hike in Dearness Allowance (DA) and Dearness Relief (DR) to the Central government employees with effect from July.
With the hike of 3 per cent in July and the pending hikes of the previous months, the DA for the central government employees will increase to nearly 28 per cent this time. This will come as a big relief to Central government employees amid the ongoing pandemic.
It must be noted that the Dearness Allowance (DA) is the sum paid by the Central government to its employees and pensioners to cope up with the inflation in the country.
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