Central Government Employees Salary and Dearness Allowance Updates

The salary and allowances of central government employees are governed by the 7th Central Pay Commission which was implemented on 5th September 2016. The latest updates about the payment under the 7th Central Pay Commission are shared here.



Travel Allowance(TA) not expected to increase from July 1

(April 27, 2021) The central government employees are waiting for an increase of DA and TA from July 2021. However, as per the Mint report, the TA shall not increase with the Dearness allowance from July 2021. The current DA rate is 17% which is less than the minimum level of 25% required for an increase in TA as per 7th Pay commission rules.

With the restoration of DA from July 2021, the dearness allowance is expected to be 28%, hence the central government employees may expect an increase in TA with the DA for the period from July 2021 to December 2021.


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Restoration of Dearness Allowance

(April 23, 2021) The central government employees are set to receive the increased DA from July 1, 2021. The DA installments due since January 1, 2020, were not paid because of the COVID-19 pandemic. The Dearness allowance is expected to increase from 17% to 28%. This will include the increase in DA as under:

Period

Increase in DA

January 2020 to June 2020

3%

July 2020 to December 2020

4%

January 2021 to June 2021

4%

 

The increase in DA shall benefit approximately 51 lac employees and over 60 lac pensioners who are waiting for the increase for the past year. However, the announcement in this respect is expected by October 2021 and the payment of increased salary only by the end of 2021.


Sources

https://www.livemint.com/money/personal-finance/7th-pay-commission-latest-news-travel-allowance-ta-hike-for-cgs-not-coming-in-july-2021-11619416617130.html


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