7th Pay Commission: Central government can give gifts to central employees in the new year. The government may announce an increase in Dearness Allowance (DA) in January. According to reports, this time the government may announce DA increase of up to 3-4 percent for central employees. This increase in DA will be considered effective from January 1, 2025. However, if we look at the record of previous years, the government announces the increase in DA for January in March. The government may announce DA increase at any time, but it is considered effective from January 1 only. The government increases DA twice a year, on January 1 and July 1.
Currently, dearness allowance and dearness relief are 53 percent.
Last year also the DA was increased in the first week of October. But it was considered effective from July 1. The government had increased DA by 3 percent in October. Then DA had increased to 53 percent. Earlier in March 2024, DA was increased by 4 percent. Then dearness allowance was increased by 4 percent to 50 percent of the basic pay. Now DA is 53 percent of basic salary. Besides, the dearness relief (DR) for pensioners is also 53 percent. DA and DR are increased twice every year. DA is given to central employees, while DR is given to pensioners.
Will dearness allowance be 57 percent?
If the government increases DA by 4 percent, then DA will increase to 57 percent. If the government increases DA by 3 percent in the new year, it will increase to 56 percent.
What will happen to pending DA dues during COVID-19?
Recently during the monsoon session of Parliament, Union Minister of State for Finance Pankaj Chaudhary clarified that the government is not looking at the possibility of releasing the 18 months of DA and DR arrears that were withheld during the COVID-19 pandemic. Minister Pankaj Choudhary, in response to a question, said the government is not considering releasing 18 months of DA and DR arrears of central employees and pensioners that were put on hold during COVID-19. The three installments of January 2020, July 2020 and January 2021 were put on hold due to financial constraints due to the Covid pandemic.
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