7th Pay Commission: Dearness allowance of central employees restored after one and a half year

New Delhi: Today is a very special day for lakhs of central employees. This is because a big decision was taken in the meeting of the Union Cabinet today. The ban on the dearness allowance of central employees has been removed. Union Minister Anurag Thakur announced that there was an increase of 11 percent in the dearness allowance of the employees. This increase will come into effect from July 1, 2021.

DA from 17 to 28 percent
In January 2020, the DA of central employees was increased by four percent. After this, it increased by three percent in the second half (June 2020). In January 2021, it had increased by four percent. In this way, increasing DA from 17 percent to 28 percent will benefit the employees. However, the government had banned it since January last year. Now after a year and a half, the moratorium on all three installments has been removed.

Due to the pandemic DA was frozen
Due to the Corona epidemic, the government had frozen the DA. Along with this, the installments of DR of ex-employees were also not paid. The Finance Ministry had agreed to put on hold the increase in Dearness Allowance (DA) for over 50 lakh central government employees and 61 lakh pensioners till June 2021.

What is Dearness Allowance?
It is to be known that dearness allowance is a part of the salary. It is a fixed percentage of the basic salary of the employee. To reduce the effect of inflation in the country, the government pays dearness allowance to its employees. It is extended from time to time. Retired employees also get this benefit.

This is how DA is calculated
For the calculation of dearness allowance (DA), the government considers the inflation rate based on the All India Consumer Price Index as the basis and on the basis of this, the DA of government employees is revised every two years.