7th Pay Commission: Three pending DA instalments to be restored for central govt employees, pensioners

The Union Finance Ministry on Tuesday (March 9) assured that the arrears (DA) of government employees and pensioners (Dearness Relief or DR) would be settled in three installments. As a result, the DA of government employees will not be affected by the COVID-19 pandemic.

According to the Ministry of Finance, the arrears will be paid to the concerned central government employees at a revised rate effective from July 1.

In a written reply to the Rajya Sabha, Minister of State for Finance Anurag Tagore said the Centre had saved more than Rs 37,430.08 crore by withholding three installments of costly allowances to government employees in the COVID-19 situation.

At present, central government employees receive 18 percent dearness allowance (DA). Last year, the Union Cabinet approved a four percent increase in dearness relief (DR) for 5 million government employees and pensioners. As a result, employees receive 21 percent DA on basic pay.

Currently, the DA for Central Government employees stands at 17% as it had halted the promised 4% hike till July 2021. The 4% DA hike was expected in accordance with the formula which is based on recommendations from the 7th Central Pay Commission.

The Dearness Allowance hike came as a major relief for nearly 50 lakh employees and over 60 lakh pensioners.