New Delhi: Finally the long wait of the Central Employees and Pensioners (7th Pay Commission) is over. The central government is considering increasing the dearness allowance (DA) and dearness relief (DR) benefits of employees by 3 percent from July. According to sources, dearness allowance can be implemented from September. This information has been obtained from the data of the All India Consumer Price Index (AICPI). It is worth noting that the AICPI report containing DA for January to May 2021 was released recently and it is expected that the dearness allowance will be hiked from July.
It is worth noting that, Central Government employees are currently paid DA at the rate of 17 percent when this 11 percent will increase to 28 percent, then obviously there will be a tremendous increase in the salary of the employees. The employees are going to get the benefit of DA for two years directly. Because dearness allowance of central employees was increased by 4 percent in January 2020, then by 3% in the second half i.e. June 2020, now in January 2021, dearness allowance has increased once again by 4 percent. That is, the total has become 28 percent. However, all these three installments have not been paid yet. This will directly benefit more than 52 lakh employees and 60 lakh, pensioners. At the same time, the pension of pensioners will also increase.
Keeping in mind the rising inflation, the central government announces increasing the dearness allowance twice a year. But due to the Corona epidemic, the dearness allowance of central employees and pensioners has not been increased. In 2006, the government had implemented the revised method of calculation of dearness allowance, which is still in force. On the basis of the new formula, now the dearness allowance is given to the employees.
Dearness allowance will be available from this new formula for central government employees
DA Percentage = (Average of AICPI(Base Year-2001 = 100) for the last 12 months -115.76)/115.76} x 100
For Central Public Sector Employees
DA Percentage = {(Average of AICPI(Base Year 2001=100) for last 3 months-126.33)/126.33} x 100
Due to the increase in the dearness allowance of central government employees, the salary will increase significantly. The increase in dearness allowance will also have a direct impact on the LTA, PF, and gratuity of the employees.
