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7th pay Commission: Here's what the Ministry of Finance declared regarding restoration of DA/DR


The Union Finance Ministry clarified that no official memorandum has been released on the reinstatement of Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners effective from July 2021. The Union Ministry of Finance stated that the "Office Memorandum on Dearness Relief to Central Government Employees" is "Fake," and that the union government has not released such an OM. Regarding the same, the Finance Ministry has recently stated via its Twitter handle that "A document is doing rounds on social media claiming resumption of DA to Central Government employees & Dearness Relief to Central Government pensioners from July 2021.

7th pay Commission: Here's what the MoF declared regarding restoration of DA/DR

This Office Memorandum (OM) is fake. No such OM has been issued by GoI." Meanwhile, a false announcement goes viral, claiming that "The undersigned is directed to say that the Dearness Allowance and Dearness Relief frozen during the Covid-19 crisis is to be resumed from July 1, 2021. The additional instalment of Dearness Allowance and Dearness relief due from July 1, 2020, and January 1, 2021, shall be paid in three instalments. These orders shall apply to all central government employees and central government pensioners." All central government employees and retirees are scheduled to be granted DA and DR arrears from January 1, 2020, July 1, 2020, and January 1, 2021.

The DA increment for central government employees and the DR increment for pensioners have not been adjusted since January 1, 2020, since the three payments due on the aforementioned dates remain suspended in the aftermath of the Covid-19 epidemic. Discussing the DA adjustment scheduled in January 2021, Shiva Gopal Mishra, Secretary - Staff Side at the National Council of JCM, stated that a pause in the DA surge planned in January 2021 may be declared in July or September-October 2021, including the DA hike due in July 2021. In case the DA increment scheduled from January 1st, 2021 is declared in July, then central government employees' DA will climb from 17% to 28% on July 30th, since the projected DA hike scheduled from 1 January 2021 is 4%, he added.

Read more about: 7th pay commission
Story first published: Sunday, June 27, 2021, 10:32 [IST]
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