7th Pay Commission latest news: Big decision on dearness allowance

7th Pay Commission latest news today: Coronavirus has negatively affected economies across the world. India is no exception to it, as lockdown in the country has severely impacted business here as well. Now, there is some big news here for govt staff from Zee Hindustan.

ZeeBiz WebTeam | Nov 23, 2020, 08:19 PM IST

The central government also has to incur huge loss in its treasury. Amid all these activities, government has taken a big decision concerning the Dearness Allowance (DA) of government employees, according to Zee Hindustan. Read more to know what is this decision.
 

 

 

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Decision on Dearness Allowance (DA) hike

Decision on Dearness Allowance (DA) hike

As per the information provided by the central government, any decision on hike in DA of government employees will be taken after June 2021. This is a big setback for central government employee as they are not getting the benefit of new rates announced earlier and now the DA hike date has been postponed again. Source: IANS

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Current DA rate

Current DA rate

It is to be noted that the central government has stopped short of implementing new DA rate due to the economic crisis created by Coronavirus pandemic. Currently, these employees are being paid dearness allowance (DA) at just 17 per cent even as govt had announced a higher rate earlier. Source: PTI

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New DA rate

New DA rate

As per the new rate the government employees were entitled for DA at 21 per cent. However, government decided against it, citing pressure on central treasury due to Coronavirus. Source: Pixabay    

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More than 55 lakh central government employees hit

More than 55 lakh central government employees hit

The employees and pensioners are expecting that the government would provide relief on DA after June 2021. Currently, the decision of giving DA at old rate is affecting 50 lakh government employees and 55 lakh pensioners directly.  Source: PTI

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DA hike twice in year

DA hike twice in year

The central government hikes DA of employees twice in a year—one in January and another in July. Source: PTI

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7th Pay commission DA hike - Background

7th Pay commission DA hike - Background

Earlier on April 23, the government had announced its decision to put on hold the hike in dearness allowance (DA) after the union cabinet had approved an increase of 4 per cent in DA to 21 per cent in March this year. The decision to hike DA was announced in March, which was effective from January 1, 2020. Source: Reuters