seventh Pay Commission: DA hike, wage improve, arrears clearance, DR advantages, TA, PF contribution

In a excellent news for lakhs of lakhs of Central government workers and pensioners, Minister for State for Finance, Anurag Thakur, has confirmed that all central government workers will get full advantages of dearness allowance (DA) beginning July 1. Thakur additionally confirmed that all the three pending installments of DA will be restored prospectively.

It could also be recalled that Prime Minister Narendra Modi-led government on the Centre had frozen the three installments of DA for central government workers and DR for pensioners, due on January 1, 2020, July 1, 2020 and January 1, 2021, attributable to COVID-19 pandemic. The Centre’s determination to restrore pending DA from July, 2021 could be a welcome information for about 50 lakh central government workers and over 65 lakh pensioners.

But, the DA hike from July 1 will solely be efficient from that day which means that central government workers wouldn’t get any arrears on non revision of DA for earlier interval.

“As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021,” Thakur stated in a written reply in Rajya Sabha.

Notably, the central government workers at present get DA of 17 per cent. In 2020, a 4 per cent improve in DA was accredited by Union Cabinet and this was meant to come back into impact from January 1, 2020 however the outbreak of coronavirus compelled the government to droop the disbursement of DA at elevated charges for central govermment emoployees alongside with DR for the pensioners.

The restoration of DA advantages from July 1 means that the wage of central government workers would improve considerably. The hike in DA will straight have an effect on the DA, HRA, Travel Allowance (TA), medical allowance of Central government workers. 

The Centre’s determination to revive DA will additionally improve the PF steadiness of Central government worker. It is to be famous that the PF contribution of central government workers is calculated on the premise of primary wage plus DA. 

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