7th Pay Commission latest news - 7th CPC: The new year may come with salary hike news for the central government employees and pensioners. As per the latest media reports, the central government employees and pensioners are expected to get a 4 per cent increase in Dearness Allowance (DA), which is expected in January 2021. This is the norm as per tradition so far.

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This DA hike is expected to be in accordance with the accepted formula, which is based on the recommendations of the 7th Pay Commission (7th CPC). It may be recalled that in March 2020, the Union Cabinet, chaired by the Prime Minister, Narendra Modi had approved to release of an additional installment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.  There will be an increase of 4 percent over the existing rate of the Basic Pay/Pension, to compensate for price rise.

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The combined impact on the exchequer on account of both 7th CPC linked Dearness Allowance and Dearness Relief was fixed at Rs 12,510.04 crore per annum and Rs 14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January 2020 to February 2021). The decision benefits about 48.34 lakh Central Government employees and 65.26 lakh pensioners.

It should be cleared here that the 7th Pay Commission linked Dearness Allowance was hiked from 17 to 21 per cent, however, due to corona pandemic and the worsening economic conditions, the payout to the government employees has been restricted to 17 per cent currently. 
Meanwhile, last week, the Modi government decided to extend "Disability Compensation" for all serving employees, if they get disabled in the line of duty while performing their service and are retained in service in spite of such disablement.

The order will particularly provide a huge relief to young Central Armed Police Force (CAPF) personnel like  CRPF, BSF, CISF, etc since disability in the performance of duties is generally reported in their case due to constraints of job requirements as well as hostile or difficult work - environment.