The Department of Expenditure, under the Ministry of Finance, had recently put out a memorandum earlier in the month of August, regarding the revised rates of the Dearness Allowance (DA) to employees of the central government and central autonomous bodies. This memorandum and the changes within were set to apply to the above employees of the above-mentioned employment, who are still drawing their salary in the pre-revised grade pay as per the 5th pay commission and the 6th pay commission. The revised DA rates will be applicable for the central government employees and central autonomous bodies employees from July 1, 2021.
Basically, what the office memorandum was emphasising was that there would be no DA arrears that will be paid to these employees for the period between January 1, 2020, to June 30 2021. The office memo also stated that the DA for the period of January 1, 2020, to June 30, 2021, for both the 5th pay commission and 6th pay commission would remain unchanged. For the periods mentioned, employees would continue to receive 312 per cent under for the 5th pay commission and 164 for the 6th pay commission.
In an office memorandum addressing the changes as per the 6th pay commission, the Department of Expenditure said, “The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing 164 per cent to 189 per cent of the Basic Pay with effect from 01.07.2021. The increase subsumes the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 164 per cent.”
The office memorandum, as per the 5th pay commission, of the Department of Expenditure, went on to add, “The rate of DA admissible to above categories of employees of Central Government and Central Autonomous Bodies shall be enhanced from the existing 312 per cent to 356 per cent of the Basic Pay with effect from 01.07.2021. The increase subsumes to the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance for the period of 01.01.2020 till 30.06.2021 shall remain at 312 per cent.”
It should be noted that the Centre had increased the DA as well as the Dearness Relief (DR) for all the central government employees recently, following 7th pay commission. The DA was previously sitting at 17 per cent, but with the hike of 11 per cent, the total DA stands at 28 per cent now. This was set to take effect from July. It was also reported that the central government was likely going to approve a DA hike of another 3 per cent. This would mean that the DA would increase to 31 per cent. There was also a previous hike in DA before all this. There was a hike in January of 2020, where it was increased by 4 per cent. It was again taken up by 3 per cent in June of the same year. January 2021 saw yet another increase to 4 per cent.
In light of all these increases, there were several states that had followed the trend and also hiked their state-wise DA for government employees. These states include Uttar Pradesh, Jammu and Kashmir, Assam, Jharkhand, Haryana, Karnataka and Rajasthan.
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