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Monday, 8 March 2021

7th Pay Commission Latest News: Centre likely to announce DA hike, DR restoration for central govt employees ahead of Holi

7th Pay Commission Latest News: Centre likely to announce DA hike, DR restoration for central govt employees ahead of Holi


7th Pay Commission latest news today:
 While Central Government employees are eagerly waiting for Dearness Allowance (DA) announcement and DA restoration, center has issued notification in regard to the 7th CPC (Central Pay Commission) Leave Rules. Due to the imposition of lockdown on 25th March 2020, a large number of central government employees who were on leave couldn't resume office as per their schedule. Instances like central government servants (CGS) on official tour not able to rejoin office due to lockdown, CGS on leave who failed to rejoin office after the end of their leave, government employees who left their office location to enjoy their week off but couldn't come back due to imposition of the lockdown, etc are some of the common grievances that central government servants (CGS) have been putting forward ever since the unlock activities began. For such central government servants, the Department of Personnel & Training (DoPT) has issued notification on 1st March 2021 announcing relaxation with some terms and conditions applied.



Central Government employees and pensioners, the Centre is likely to implement the previously announced hike in Dearness Allowance (DA) and Dearness Relief (DR) after Holi. The Centre had last year announced a 4 per cent hike in DA and DR of the Central Government employees and pensioners.

The hike in DA and DR will benefit over 48 lakh working employees of the Central Government and over 65 lakh pensioners. The hike of 4 per cent will increase the DA to 21 per cent. Currently, the DA provided to the central government employees is at 17 per cent.

According to media reports, while the government is yet to announce any deadline on the implementation of the wage code, it is likely that the same may be implemented from April 1 2021. The government is also expected to change the official working hours, gratuity and provident funds of its employees from April 1.

Media reports also suggest that the government is mulling to provide 4 per cent arrears also, which will increase the DA to 25 percent. However, no official announcement has been made yet. The increase in dearness allowance will be in accordance with the accepted formula, based on the recommendations of the seventh Central Pay Commission.

The DA and DR hike will cost Rs Rs 12,510.04 crore and Rs 14,595.04 crore respectively in Financial Year 2020-21 and will benefit 48.34 lakh central government employees and 65.26 lakh pensioners. The dearness allowance is given to the central government employees to help them bear with their expenses keeping inflation in mind. It is announced twice a year, the first instalment from January to June and the second one from July to December.

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