7th Pay Commission: Decoding the official note on dearness allowance – when will pay hike come?


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7th Pay Commission: Decoding the official note on dearness allowance – when will pay hike come?

7th Pay Commission Latest News Today: Central government employees are being paid Dearness Allowance (DA) at old rates due to Coronavirus pandemic. The government is paying them DA at 17 per cent currently. The employees have to make peace with DA rate of December 31, 2019. However, the government had increased DA by 4 pct and the current rate of DA is 21 per cent but, central government employees will not be paid DA at current rate and there is a big reason behind that.

The hike by 4 pct of Central government employees’ DA is on hold and it will not increase from January 2020 to June 2021 due to pandemic. So, when will it happen and things will change for the better in these tough times hit by the coronavirus pandemic that has affected the economy badly? Well, according to the notification, the employees will get good news on DA only after June 2021. The government will likely make some announcement on it after June 30, 2021. However, this will happen only if the government does not change the dates provided in the notification. So, if things go well, government may even do it earlier.

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Central government employees’ DA is increased twice a year in January and July on teh basis of the 7th pay commission system that is in place. At present situation, there won’t be any increment in their DA for around one-and-half years. The government pays DA to employees and pensioners to keep pace with purchasing power from rising daily living expenses and rate hikes after rising inflation.

All India Consumer Price Index based inflation rate is used to calculate DA. Amid pandemic, Modi government had announced Leave Travel Concession (LTC) cash voucher scheme for employees, keeping festive season in mind. Under this scheme, the employees can buy goods and services thrice the fare of rail and air fares in place of leave. Besides, the employees have also been given bonus. The government has announced productivity and non-productivity linked bonus for FY 2019-2020 too.

Source:- zeebiz

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