Anurag Thakur said that three pending DA installments of the Central Government Servants will be 'subsumed' and the revised DA rates will become effective from 1st July 2021
7th Pay Commission Matrix: Around 52 lakh central government employees had a piece of good news last month when the Narendra Modi Government made it clear that central government servants (CGS) will be soon given full Dearness Allowance (DA) benefit. The Minister of State (MoS) for Finance Anurag Thakur made the announcement in this regard in a written reply in the Rajya Sabha. The MoS Finance said that central government employees will be given full DA benefit from 1st July 2021.
In his written reply in the Upper House of parliament, Anurag Thakur said that three pending DA installments of the Central Government Servants will be 'subsumed' and the revised DA rates will become effective from 1st July 2021. Center has freezed DA benefit of the central government employees till June 2021 and the announcement made by Anurag Thakus has come as a big relief to around 52 lakh central government employees.
"As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021," MoS Finance Anurag Thakur told in the Upper House.
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As announced by Anurag Thakur, from 1st July 2021, the effective DA for the central government employees may jump from existing 17 per cent to 28 per cent. This 11 per cent rise in the DA includes 3 per cent DA hike announced for January to June 2020, 4 per cent DA hike announced for July to December 202 and expected 4 per cent DA hike due from January to June 2021 period. So, the DA hike from 17 per cent to 28 per cent will lead to huge rise in one's 7th CPC salary.
Benefit for pensioners
Once the DA gets restored, it will bring cheer on the faces of around 60 lakh retired central government pensioners too. While announcing to freeze DA, center had freezed DR (Dearness Relief) benefit to pensioners too. So, once the DA gets restored, DR benefit for pensioners will also get restored and hence retried central government employees' pension is also expected to leapfrog from 1st July 2021.
The three installments of DA and DR benefit meant for central government employees and pensioners due from 1.1.2020, 1.7.2020 and 1.1.2021 was frozen in view of the Coronavirus pandemic. With this move center had announced to save ₹37,430.08 crore, which it announced to use for dealing with the COVID-19 pandemic.