7th Pay Commission: Minister of State for Finance Anurag Thakur had said in a written reply in Rajya Sabha that from July 1, all employees of the Central Government will get full benefit of DA. They will also get the benefit of the increase in DA along with the freezed DA from January to June 2021.
New Delhi: 7th Pay Commission: Millions of central employees and pensioners are awaiting their dearness allowance (DA) and dearness relief (DR). It is expected that it will be added to the salary of the employees from June 2021. This will be under the 7th Pay Commission of the Central Employees, which is outstanding since January 2021, now it is likely that it will be till June only. According to reports in the media report, the government will continue to announce the DA on time, but it will not come before the salary of central employees before June this year.
How will the contribution of PF change?
The central government has frozen the DA of the employees by June 2021. However, the Modi government has now made it clear that the dearness allowance will be restored from July 1. Three stalled installments of DA – January 2020 to June 2020, July 2020 to December 2020 and January 2021 to June 2021 will be added to the salaries of central employees. Now, the provident fund (PF) contribution is calculated by adding the basic salary and DA of the central employees. In such a situation, if DA increases then the PF contribution will also increase automatically. The benefit of which will be visible to the employees in the long term. Right now the employees get DA, DR at the rate of 17 percent, it can increase to 28 percent.
Increase in DA will also benefit
Let us tell you that only last month, Minister of State for Finance Anurag Thakur had told in a written reply in Rajya Sabha that from July 1, all employees of the Central Government will get full benefit of DA. They will also get the benefit of the increase in DA along with the freezed DA from January to June 2021.
28% DA Mathematics
From July 1, there will be a huge jump in the salaries of central employees and pension of pensioners. The latest data from the AICPI (All India Consumer Price Index) reported that at least 4% DA is estimated for the period from January to June 2021, according to news reports published in media reports. It is expected that 3% DA for January to June 2020 and 4% DA announced from July to December 2020 will also be added to the existing DA of Central employees, which is currently 17%. That means the total (17 + 4 + 3 + 4) will be 28 percent DA.
Family pension increase
A few days ago, the central government had announced to increase the maximum limit of family pension for government pensioners. The central government has increased the maximum limit of family pension by almost two and a half times. Till now the maximum limit of family pension was Rs 45,000 per month. Now it has been increased to Rs 1.25 lakh per month.
