7th Pay Commission Latest News Today: After announcing hike in the dearness allowance for the government employees, will the Centre again increase their monthly gross basic pay? In a clear indication, the Centre said there is no such plan as of now. In a written reply to a query in the Rajya Sabha on Wednesday, Union Minister of State in the Ministry of Finance Ministry Pankaj Chaudhary said the Central government not actively considering any such plan.
Giving further clarification, the Union Minister said that the fitment factor of 2.57 was uniformly applied to all categories of employees only for the purpose of fixation of pay in the revised pay structure based in the recommendations of the 7th Central pay Commission.
He said this while responding to a query on whether the Government is actively considering to raise monthly gross basic pay of Government employees after the restoration of full benefits of Dearness Allowance (DA) and Dearness Relief (DR) in accordance with fitment factor as per the recommendations of 7th Pay Commission.
Earlier this month, the Union Ministry of Finance restored the instalments of DA and DR with effect from July 1, 2021. Notably, these instalments were due from 01-01-2020, 01-07-2020 and 01-01-2021 in respect of Central Government employees pensioners.
As per the fresh announcement of restoration of DA and DR, the Central government employees and pensioners will get DA/DR at 28 per cent (11 per cent over the previous rate of 17 per cent from July 2021).
The Ministry of Finance has said in a statement, “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.”
Apart from the increase in Dearness Allowance, the Centre has also ordered to increase the House Rent Allowance (HRA) of Central employees. Since July 1, the Dearness Allowance has increased to 28%, so it is necessary to revise the HRA as well for them.
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