Sunday, January 29, 2023

Central personnel will receive a 28 percent dearness allowance under the 7th Pay Commission, but not 18 months arrears.

Updates from the 7th PayCommission: Despite the fact that the dearness allowance is 28 percent, the contentment of central staff is a little lacking. Because he expected the government to make a huge announcement about his DA arrears at the cabinet meeting yesterday, but nothing like that happened.

The Dearness Allowance and Dearness Relief for Central Employees and Pensioners has been enhanced from 17 percent to 28 percent under the 7th Pay Commission. This increase of 11% is fantastic news for employees and retirees alike. However, the employees’ joy is tempered by the fact that they anticipated the government to also make a declaration addressing arrears, which did not occur. That is, they will not be reimbursed for 18 months of DA arrears.

Since July 1, the DA has been increased.

About 65.26 lakh pensioners and 48.34 lakh central employees will profit from the move to boost dearness allowance to 28 percent. The central government had stopped the rise in dearness allowance paid to employees from January 2020 as a result of Corona. Since then, employees have been receiving DA at a rate of 17%. Because the government has previously said that the dearness allowance will continue at 17 percent from January 1, 2020 to June 30, 2021, the higher dearness allowance of 28 percent will begin in July 2021.

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Employees demanded that the government pay them DA retroactively (back to the beginning of the year), but the government bluntly refused. According to the administration, the higher dearness allowance will take effect on July 1, 2021. Employees and retirees will not be able to get DA arrears from the previous 18 months. Employees will be disappointed by this news.

Because the employees were hoping that if they received three outstanding DA checks, they would receive a large sum of money.

Will the additional DA be paid in the following month’s salary?

According to the Central Government’s declaration, employees and pensioners would be eligible for 28 percent DA and DR as of July 1. Will it, however, be included in the July salary? This is an important question. Because only when the central government publishes an order today or tomorrow will this happen. Employees’ salaries begin to be paid on the 16th of each month. If this does not occur, the enhanced DA, i.e. 28 percent, will only be available in the following month’s salary.

How much will the pay increase if the DA is increased?

Previously, central government personnel received a dearness allowance of 17 percent of their basic wage, which will now be increased to 28 percent. That is, there will be an 11 percent increase. If an employee’s basic income is Rs 20,000, he previously received DA 3400 at a rate of 17 percent, but now it is 28 percent, resulting in Rs 5600 in dearness allowance. In other words, the salary will go up by Rs 2200 (5600-3400=2200). As a result, the pensions of retirees will be decided. Employees can assess how much their salary would increase after boosting DA based on their basic pension.

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