This decision of the central government will benefit more than 48 lakh central employees and 65 lakh pensioners. According to the Finance Ministry, this order will also be applicable to the civilian employees getting paid from the Defense Services estimate. Separate orders will be issued by the concerned ministries for the employees of armed forces and railway employees.
DA-DR not received since 18 months
The Center had stopped the payment of DA and DR from 1 January 2020 due to Kovid-19. Due to this, 18 months DA-DR has not been paid to central employees and pensioners from 1 January 2020 to 30 June 2021. However, DA-DR is being paid at the rate before January 1, 2020. For central employees and pensioners, DA is increased after every 6 months. The Center has increased the DA by 4% in January 2020, 3% in June 2020 and 4% in January 2021.
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DR benefit to 60 lakh pensioners
The decision of the cabinet will also benefit about 60 lakh pensioners of the central government as their dearness relief (DR) benefit will also be restored along with DA benefits of central government employees. However, the Union Minister clarified that DA and DR arrears of about 1.14 Central Government employees and pensioners will not be given for the period January 2020 to June 2021.
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How much will the salary increase after DA Hike?
Since the DA of central government employees will increase from 17 per cent to 28 per cent with effect from July 1, 2021, their monthly salary is expected to keep pace with the DA hike. This increase can be calculated on the basis of basic salary of the employee. For salary calculation under 7th Pay Commission, suppose that if the basic monthly salary of a central government employee is ₹ 20,000, then his current DA per month is ₹ 3400, now after the increase in DA, his monthly DA is ₹ 5600 Will happen. Similarly, other central government employees can check the increase in their monthly DA amount.
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