7th Pay Commission (7th CPC) latest news today 2021: Good news for central government employees in Budget 2021? Know news update on DA, LTA, gratuity

ZeeBiz WebTeam | Feb 01, 2021, 08:03 AM IST

7th Pay Commission latest news today: The year 2021 was quite tough for the central government employees. On one hand, they had to fight with deadly Coronavirus while on the other hand, they had to adjust their monthly budget amid soaring inflation because the central government had frozen the Dearness Allowance (DA). So, in the last 12 month, COVID-19 not only hit the national and international economy, it hit the monthly budget of the central government employees too.

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Restoration of DA in Budget 2020-21

Restoration of DA in Budget 2020-21

Among many expectations, the central government are eagerly waiting about the restoration of the DA for central government employee that will lead to rise in their monthly salary. Currently, central governments are getting 17 per cent as DA of their basic salary while 4 per cent DA for July to December 2020 is freeze. Photo: PTI

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Big jump in monthly salary

Big jump in monthly salary

Apart from this, central government employees are awaiting 4 per cent DA for January to June 2021. so, if the DA is restored, central government employees' Da will become 25 per cent of their basic salary — a huge jump in their monthly salary. Photo: PTI

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Centre to raise DA to go up to 28%

Centre to raise DA to go up to 28%

There is a buzz that the government might take the DA hike to 28 per cent instead of restoring 21 per cent to help government employees, who faced financial hardships during the COVID-19 pandemic times. Photo: Reuters

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Travel Allowance

Travel Allowance

As per the 7th CPC (Central Pay Commission) provisions, the monthly Travel Allowance (TA) of a central government employee get increased automatically when the DA is announced. Since, DA has been freeze, the monthly hike in TA has also got freeze. So, restoration of DA will lead to rise in TA with same percentage — a huge jump in the monthly take home salary of a central government employee. Photo: Reuters

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Leave Travel Allowance (LTA)

Leave Travel Allowance (LTA)

LTA is part of an employee’s CTC (Cost to Company). Under the Income Tax Act, employees can claim exemption for travelling within the country. There is a buzz in the media that more LTA benefits could be announced in the budget 2021 to promote new tax regime. This is also as most of the central government employees could not avail this facility last year due to lockdown. Photo: Reuters

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Gratuity

Gratuity

Central government employees are eligible to receive gratuity after a few years of service. The maximum limit for types of gratuity remains to be Rs 20 lakh, since 2016. As the gratuity payout to employees will increase on introduction of Code on Wages, 2019 and the Code on Social Security, 2020, it is expected that the government would increase the upper limit of Rs 20 lakh to Rs 25 lakh. Photo: Reuters