7th Pay Commission DA, DR benefits: What central government employees, pensioners will get after Modi government's 'confirmation'

7th Pay Commission DA, DR benefits:  The Narendra Modi government had announced that central government employees (CGEs) and pensioners will be getting full benefits of Dearness Allowance (DA) and Dearness Relief (DR), effective July 1.

ZeeBiz WebTeam | Apr 17, 2021, 10:03 PM IST

7th Pay Commission DA, DR benefits:  This has led to confusion among central government employees, however, it is expected that they will get 11 per cent raise in DA from the current level.  

 

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7th CPC: DA current rate

7th CPC: DA current rate

Currently, they are getting DA at 17 per cent after the government had chosen to freeze their DA in the view of Covid 19 pandemic last year.  Source: PTI

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Who will benefit

Who will benefit

Around 50 lakh central government employees and about 65 lakh pensioners are set to benefit from this move. It is expected that final DA that central government employees will get is 28 % (17% + 11%). Source: PTI  

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7th pay commission DA calculation:

7th pay commission DA calculation:

According to All India Consumer Price Index (AICPI) data, a 3% increase in DA from January to June 2020, a 4% hike for July-December 2020, and a 4% increase from January-June 2021, are expected. This makes for 11 % hike and final DA turns out to be 28 per cent.  Source: Reuters

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7th pay commission DR increase

7th pay commission DR increase

Also, since the DA and DR are directly proportional in the way they are hiked. Cental government pensioners are also expected to get an increase in their DR on the same line.  Source: PTI

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What government said on DA hike

What government said on DA hike

Earlier, Anurag Thakur, the Minister of State (MoS) for Finance, had also informed about it in a written reply to Rajya Sabha. Thakur had said three pending DA installments of the central government employees will be ‘subsumed’ and the revised DA rates will be effective from July 1, 2021. “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 had said. Source: PTI