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HomeEconomyPay Commission 7: DA hike for central govt employees in June

Pay Commission 7: DA hike for central govt employees in June

The second wave of Covid-19 compelled the union government to postpone the implementation of the 7th Pay Commission recommendations

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As part of the 7th Pay Commission pay matrix, the announcement for Dearness Allowance (DA) hike, which has been due since 1 January 2021, may get further delayed. As per the National Council of JCM — Staff Side, the union government may announce DA hike for central government servants (CGS) next month that is in June. However, a JCM office-bearer reiterated that the DA hike would be to the tune of at least 4% of the basic salary of a central government employee.

Secretary Staff Side at the National Council of JCM Shiva Gopal Mishra said, “We are in constant touch with the Department of Expenditure officials at the Ministry of Finance and the Department of Personnel & Training (DoPT) officials. They say that the plan of the union government has got disturbed by the second wave of Covid-19 in the country and, hence, everything got pushed by nearly a month. So, the DA hike announcement which was expected by April end or by May first fortnight may now get shifted to June.”

DA restoration in 7th Pay Commission

Mishra said that it won’t have much impact on the central government employees 7th CPC pay matrix as the centre has already frozen the DA and DR benefit of central government servants and pensioners till June 2021.

In 2021, the minister of state (MoS) at the Ministry of Finance had announced in the Rajya Sabha that DA and DR benefit will be restored from 1 July 2021. So, even if the DA hike due since 1 January 2021 is announced today, it will be restored from 1 July only.

DA hike calculation

On the question of expected DA hike, Mishra said, “As per the DA hike calculation, average inflation for July to December 2020 comes around 3.5% that means the minimum DA hike that a central government will get is 4% of their basic salary.”

Mishra said about the three instalments of the DA that the JCM and other central government officials concerned were in constant touch and they were soon going to sit together and discuss the payment of three DA instalments.

The most positive thing about the DA instalments is that the union government is not averse to paying the DA instalments, said Mishra adding, “We have recommended a pay of DA instalments to the union government employees in parts if they are unable to pay the three instalments of DA to around 52 lakh employees in one go.”

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