Key Points:
- A doubled relief and happiness may come the Central Government Employees (CGE) way in July 2021 as the Centre is expected to restore Dearness Allowance (DA) for them.
- The existing 17% DA would directly jump up to 28% (17 + 3 + 4 + 4) if the 7th Pay Commission begins.
- In news related to the 7th Pay Commission, the government is yet to notify the rules relating to the four labour codes.
A doubled relief and happiness may come the Central Government Employees (CGE) way in July 2021 as the Centre is expected to restore Dearness Allowance (DA) for the central government employees.
What is Dearness Allowance (DA)?
The Dearness Allowance is a calculation on inflation and allowance paid to government employees, public sector employees and pensioners in India, Bangladesh and Pakistan. Dearness Allowance is calculated as a percentage of an Indian citizen’s basic salary to reduce the impact of inflation on people.
So, once the DA for the Central Government employees is restored, the 7th Central Pay Commission (CPC) fitment factor will help in rising the monthly salary of the Central Government Employees hugely. The existing 17% DA would directly jump up to 28% (17 + 3 + 4 + 4). The bifurcation of DA is based on the expected:
- 4 % DA for January to June 2021
- 4 % DA announced for July to December 2020
- 3 % DA announced for January to June 2020 period.
In all this, the 7th CPC Fitment Factor of 2.57 that one must remember while calculating the estimated rise in the monthly salary.
The 7th Pay Perks:
The Central Government Servant is eligible for the 7th Pay commission perks like:
- Dearness Allowance
- House Rent Allowance
- Travel Allowance
- Medical Allowance, etc.
The current DA for the CGE is 17% of their basic salary meaning, if Rs 30,000 is the monthly basic salary the DA will be Rs 5,100. But, when the DA will jump to 28%, the DA would become Rs 8,400.
Economic Times, quoting a senior official said that the decision to execute the new wage code has been postponed, meaning which, employees salary structure will remain as they are.
In news related to the 7th Pay Commission, the government is yet to notify the rules relating to the four labour codes that Apurva Chandra, Secretary Labour and Employment, on February 8 had mentioned. He also said that the ministry would soon be in a position to bring into force the four Codes- Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions and Social Security Codes.
The 7th Pay wage was to come in effect on April 1, 2021 meaning a hike in the salary of the Central Government Employees.
The government hopes that this scheme will get the CGE more money leading to increased spending.
