Lakhs of Central government employees who are awaiting the arrears of their Dearness Allowance (DA) hike will get some good news really soon. The National Council of JCM headed by Central Government Employees (CGS) and central government officials from the Ministry of Finance and Department of Personnel and Training are scheduled for a talk this month.
The government has already said that the stalled dearness allowance (DA) and dearness relief (DR) will be resumed from July 1. The three instalments of dearness allowance for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, were frozen in view of the COVID-19 pandemic.
The employees are going to get the benefit of two years DA directly, because the dearness allowance of the central government employees had increased by 4 per cent in January 2020, then there was an increase of 3 percent in the second half i.e. in June 2020. In January 2021, the dearness allowance increased once again by 4 per cent.
That means the total has gone up to 28 percent. However, these three instalments have not yet been paid.
Overall, a 15 percent dearness allowance is expected to be added to the salary, which will roughly translate to an increase of Rs 2700 per month. On annual basis, the total dearness allowance will increase by Rs 32,400.
At present, the minimum salary according to the pay matrix of central employees is Rs 18,000. If 15 percent dearness allowance is added to this, Rs 2,700 per month will be directly added to the salary as DA. Thus, on annual basis, the total dearness allowance will increase by Rs 32,400.
The 7th Pay Commission DA instalment talks are likely to resolve the 7th Central Pay Commission matrix issue that has been delaying the implementation of full benefits.