7th Pay Commission:
The Central Government on Wednesday has increased the Dearness Allowance for the Railway and Central Government employees and pensioners from the existing rate to 28 percent with effect from 1st July 2021 by eleven percent after a long wait.
The rate at which the Center used to pay dearness allowance was 17 percent earlier, which has now been increased to 28 percent. So, for an employee whose salary is Rs. 40 thousand, his salary will increase to Rs. 44,400.
The Information and Broadcasting Minister, Anurag Thakur gave this information in a press conference recently. He said that the government has decided to increase the DA from 17 percent to 28 percent. This will put a burden of Rs 34,401 crore on the exchequer every year. Due to the Covid-19 pandemic in the country, the three installments of Dearness Allowance and Dearness Relief, payable to Central Government employees and pensioners on 1st January 2020, 1st July 2020, and 1st January 2021, were banned.
After getting all three installments, the total DA will increase to 28 percent which includes a hike of 4 percent with effect from 1st January 2020, 3 percent with effect from 1st July 2020, and 4 percent with effect from 1st January 2021. This will benefit more than 50 lakh employees and 60 lakh pensioners, across the country.