7th Pay Commission: DA at 25 per cent, TA hike, DR, salary increase for central government employees—what we know so far

After facing financial hardships during the Covid 19 peak, central government employees are set to be rewarded with ‘double bonanza’. As we know that central government employees’ DA was curtailed by the Narendra Modi government to mitigate challenges posed by the Covid 19, it is learnt that government might compensate for the loss period, taking the DA for January to June 2021 at 25 per cent.  

This needs to be understood from announcement of All India Consumer Price Index (AICPI). After the announcement of All India Consumer Price Index (AICPI), the central government employees are eagerly waiting for the Dearness Allowance (DA), linked to 7th CPC (Central Pay Commission), for January-June 2021 period. Since DA is directly linked to their Travel Allowance (TA) and arrears, they cannot wait for the announcement to be made by the Modi Government.  

Now, since the central government servants (CGS) are waiting for their DA regularization too as their DA has been frozen since July 2020, which is proving to be a hurdle in addition to arrears in their monthly salary.   

As per the AICPI data, the Narendra Modi Government may announce 4 per cent DA for January to June 2021 period that means their DA would become 25 per cent of their basic monthly salary (17+4+4) once the DA is restored. As an additional 4 per cent DA for July to December 2020 is still not added in their monthly salary.  

As per the 7th Pay Commission rules, central government employees Travel Allowance (TA) will automatically rise once the DA is announced. So, the central government employee’s monthly salary will grow many folds once the DA is announced.  

Like central government employees, around 58 lakh retired central government pensioners are awaiting for the Dearness Allowance (DA) announcement as it is directly linked to their Dearness Relief (DR). They are also expected to get the same kind of monthly pension hike once the DR is restored.  

Under the 7th CPC, after the announcement of DA, employees will get arrears for late DA announcement. For example, if the DA is announced in February, then they will get arrears for January 2021 month as the DA is meant for January to June 2021 period. This will affect central government pensioners too as their DR is also getting delayed due to late DA announcement by the Modi Government.  

While fighting Coronavirus, the Modi Government decided to freeze DA and DR till June 2021, however, some media reports suggest that it might be restored before June 2021. So, both central government employees and pensioners are eagerly waiting for such good news from the Modi Govt as it will increase their monthly salary and pension manifold.