7th Pay Commission Latest News: Giving a piece of good news to lakhs of Central government employees, the Union Cabinet on July 14 increased the Dearness Allowance (DA) and Dearness Relief (DR) after a gap of one-and-half years from 17 per cent to 28 per cent. Notably, this move will help nearly 1.14 crore employees and pensioners. Interestingly, the decision from the Centre comes at a time when retail inflation has remained over 6 per cent for the two straight months. The increase in DA and DR will help these beneficiaries to cope up with rising food and oil prices amid the coronavirus pandemic.
Giving details, Information and Broadcasting Minister Anurag Thakur said that the new rates of DA and DR will impose an annual burden of Rs 34,401 crore on the exchequer and it will come into effect from July 2021.
Here are some of the latest developments that central government employees must know:
DA Hike: To help the Central government employees, the Union Cabinet has restored the dearness allowance to 28 per cent from 17 per cent. The central government employees were receiving 17 per cent DA since July, 2019.
Hike in take-home salary: The Finance Ministry said that the revised DA rate will be come into effect from July, 2021. After this announcement, a central government employee who generally gets Rs 18,000 per month, will see a hike of 11 per cent in his take-home salary. His salary will increase by Rs 5,040 from July. The Dearness Allowance from January 1, 2020 to June 30, 2021 will remain 17 per cent for government employees. However, the employees will not get DA arrears for the mentioned period.
PG and Gratuity: As the dearness allowance is linked to the basic salary of the Central government employees, the hike in DA will also increase the monthly provident fund (PF) and gratuity amount. Hence, the PF, Travel Allowance and gratuity will go up for the employees and the pensioners.
Big news for pensioners: Now the pensioners will get pension slips in their WhatsApp. The Centre has told banks they can use social media apps such as WhatsApp alongside SMS and email to send pension slips to pensioners after their account is credited. Banks may also use social media apps WhatsApp etc in addition to sms and email, said the order issued by the Department of Pension and Pensioners’ Welfare. The banks were impressed upon to undertake this welfare measure as this information is required by pensioners in connection with Income Tax, Dearness Relief payments and DR arrears among others, the order said.
Leave Travel Allowance: For the benefit of the Central government employees, the Centre has extended the timeline for submission of bills to claim Leave Travel Allowance (LTA) beyond May 31. “Representations have been received in this Department to extend the date of settlement of bills/claims beyond 31.05.2021 in view of the situation existing due to the Covid-19 and difficulties being faced in settling the claims/bills. It has been decided that Ministries/Departments may consider the settlement of those claims/purchases made on or before 31.03.2021 beyond the due date i.e. 31.05.2021,” the ministry of finance said.
Get real time update about this post directly on your device, subscribe now.