The Dearness Allowance (DA) and Dearness Relief (DR) benefits of central government employees and central government pensioners will be resumed from July 1. The ministry has previously confirmed that the government's suspended dearness allowance (DA) and dearness relief (DR) will be reinstated on July 1, 2021. Furthermore, on the matter of arrears, a conference has been set for June 26 between the National Council of JCM, the CGS's representative organisation, and representatives from the Department of Personnel and Training (DoPT) and the Ministry of Finance. Since January 2020, the allocation of DA to central government employees has not been adjusted.
As a result, central government employees will receive their DA arrears for the interval of January 1, 2020 to January 1, 2021 in three installments according to the 7th pay commission. In calculating their salaries and pensions, Central Government employees should examine their particular 7th Pay Commission salary matrix, said Shiv Gopal Mishra, Secretary (Staff Side), National Council of JCM. A central government employee should verify his or her monthly basic salary, which is determined by the 7th pay commission pay matrix, to confirm how much his or her monthly basic salary would rise after DA restoration. Central government employees are recommended to evaluate their current DA after evaluating their monthly basic salary.
It is presently at 17%. Following DA restoration, the DA will rise to 28%. As a result, monthly DA will increase by 11%. As a result, starting in July 2021, a central government employee's monthly DA allowance will be increased to 11 per cent of their basic salary. The same method can be used to determine a central government pensioner's dearness relief (DR) benefit. According to All India Consumer Price Index (AICPI) statistics, DA may be hiked by at least 4% between January and June 2021. According to the reports, once the DA is reintroduced, the Dearness Allowance for central employees may climb from 17 per cent to 28 per cent. This comprises a 3% hike in DA between January and June 2020, a 4% hike between July and December 2020, and a 4% hike between January and June 2021.
Thus, using the 7th Pay Commission salary formula, if a central government employee's monthly basic salary is Rs 20,000, his or her monthly DA will increase to 28% of Rs 20,000, resulting in a monthly DA increase of 11% of Rs 20,000, or Rs 2200, according to Hindustan Times.