7th Pay Commission latest news: The Narendra Modi-led Central government introduced the Union Budget for FY 2021-2022 on Monday. When Finance Minister Nirmala Sitharaman presented the Budget 2021 in Parliament, high expectations were there that the Minister might make some announcement related to the DA (Dearness Allowance) of the central government employees. Though their expectations from the Budget turned out to be a disappointment, there is some good news for them.
This year lakhs of employees of the country are waiting for dearness allowance. If everything goes well, it will be announced soon. The latest news in this regard is that the Labor Office has released the data of SICPI SICPI from July 2020 to December 2020. This is expected to increase the DA of the central employee by 4 percent.
According to Citizens Brotherhood President Harishankar Tiwari, by June 2021, DA will increase from 30 to 32 percent. This will benefit 15 percent in the DA of the central employee. Currently, 17 percent of the employees are DA, Which has increased to 21 percent in 2019. But the government stopped the increase until June 2021 due to the Corona infection.
But now information has come that soon the government is going to announce dearness allowance for the central employees, yes it is different that the dearness allowance in their salary will be added only after June. The good news is that if the DA of the central employees increases by four percent, then according to the Seventh Pay Commission, their travel allowance will also increase. That is, if four percent dearness allowance increases, then four percent travel allowance will also increase.
At present, the dearness allowance of central employees is 17 percent. If four percent increase is announced, the dearness allowance will be 21 percent, and four travel allowance will also increase. That is, if we say that dearness allowance will be increased to 25 percent, then there will be a bumpy increase in the salary of the employees.
The Central Government periodically revises the dearness allowance. Its calculation is in percentage, considering the base pay as base. At present, DA is different for employees and pensioners. Dearness allowance is fully taxable. At the same time, house rent allowance is also very important for the employee. The calculation of DA is based on the percentage of basic salary. Dearness allowance is given to central government employees to help them bear their expenses keeping inflation in mind. It is announced twice a year, the first installment from January to June and the second from July to December. Which is combined with HRA.
However, the dearness allowance is not available at present due to Covid-19. The first installment is given from January to June and the second from July to December. Which is combined with HRA. However, dearness allowance is not available at present due to Kovid-19. The first installment is given from January to June and the second from July to December. Which is combined with HRA.
