7th Pay Commission: Good news for central govt employees, may get up to 3% hike in DA

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Central government employees and pensioners have a reason to rejoice, as they are likely to get a 3% hike in the dearness allowance (DA). The labour ministry has released the AI ​​CPI-IW figures for June 2021. The ministry said on Saturday that the All India Consumer Price Index for industrial workers has increased by 1.1 points to 121.7 in June. With the increase in inflation, DA will also increase.

Senior labour and employment advisor, also chief labour commissioner (Central) tweeted on Saturday that working class families will get some relief from inflation due to increase in salary.

RN Parashar, general secretary of Confederation of central government employees and workers, a union of central government employees and workers, told Money9 that by the end of August or in the first week of September, the government may announce a 3% increase in DA.

NCJCM had a meeting with the secretary, department of personnel and training, and department of expenditure, Parashar said. He said that the employees will get the payment of the last three outstanding installments along with the salary for the month of July. After that, the government can announce another 3% increase in DA at the end of August or in the first week of September. With this, the DA of the employees will increase to 31%.

On the basis of the calculation of inflation, the central government gives dearness allowance to its employees. The government changes it every six months. DA is calculated on the basis of basic pay.

The Central Government had recently decided to remove the moratorium on dearness allowance for central government employees and dearness relief for pensioners. With this, the rate of DA has increased up to 11% that is from 17% to 28%. The DA had come into effect from July 1, 2021.