7th Pay Commission latest news today: This government move to benefit 50 lakh central government employees, 61 lakh pensioners

7th Pay Commission: Central government employees had to face financial hardships like everyone else during the Covid-19 peak. 

ZeeBiz WebTeam | Jan 19, 2021, 10:05 AM IST

On top of that, government employees had to face the tough situation of having their dearness allowance grant postponed due to pandemic, making things even worse. The government had last year stopped short of implementing the new DA and had cited the coronavirus challenges for the same.    

 

 

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DA, DR relief on the cards

DA, DR relief on the cards

In what comes as a good news for 50 lakh employees and 61 lakh pensioners of the Central government, reports are indicating that Centre may well decide to hike Dearness Allowance (DA) and Dearness Relief (DR) and that too at the rate of 28 percent rate of inflation. DA is being given at the old rate of 17 percent rate. Source: Reuters

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21 per cent DA

21 per cent DA

As per the reports, the Centre may increase DA by another 4 percent. If the reports come true then it means that the DA of employees of Central government will increase from 17 percent to 21 percent. It is to be noted that there is no official announcement made by Centre in this matter so far.  Source: Reuters

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'Benefits from this month'

'Benefits from this month'

According to the reports, the benefit of the dearness allowance (DA) will start coming from January itself.

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DA as per current inflation rate of 28 per cent

DA as per current inflation rate of 28 per cent

It is learnt that the Association of Employees Confederation of Central Government Employees and Workers have urged Union Finance Minister Nirmala Sitharaman to release the DA of all government employees and pensioners as per the current inflation rate of 28 percent and not go by the old numbers. Source: PTI

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Covid 19 impact

Covid 19 impact

Earlier in April 2020, it was decided by Union Finance Ministry to freeze the dearness allowance (DA) for 50 lakh central government employees and dearness relief (DR) for 61 lakh pensioners till July 2021 due to the coronavirus pandemic. Source: PTI

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Department of Expenditure official memorandum

Department of Expenditure official memorandum

The Department of Expenditure had then said in an official memorandum that due to COVID-19 crisis, the Centre had decided that additional instalment of DA payable to central government employees and dearness relief (DR) to central government pensioners due from January 1, 2020, shall not be paid. The memo added that additional instalment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid. Source: Reuters