New Delhi, July 1: Central government employees and pensioners, who get salaries and pensions as per the recommendations of the 7th Pay Commission, were hoping to get full benefits of dearness allowance (DA) and dearness relief (DR) respectively from July. However, the government is unlikely to restore DA and DR from this month. Reports now say DA and DR benefits will be restored in September. 7th Pay Commission Latest News Update: Big Hike Expected in Basic Pay of Central Government Employees Post-DA Restoration, Says Report.
"In our meeting held on 26th June 2021, it has been agreed that central government employees' DA and pensioners' DR benefit will be resumed in September 2021," Shiv Gopal Mishra, who negotiated the 7th Pay Commission (7th CPC) recommendations with the Centre on behalf employees, told The Mint. Mishra also shed light on the procedure before the DA and DR is restored for central government employees and pensioners respectively. 7th Pay Commission Latest News Update: Wait Gets Longer, Pending DA and DR Payment Likely in September.
According to Mishra, the Ministry of Finance will send a proposal for resumption of DA and DR benefits to the Union Cabinet. Once the Cabinet gives its nod, DA and DR benefits, as recommended by the 7th Pay Commission, will be restored. DA is generally revised twice a year - in January and July.
The Centre had put on hold three installments of DA for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020 and January 1, 2021, due to the COVID-19 pandemic. In addition, the government is yet to announce increment in DA and DR, supposed to happen in July 2021.
According to Mishra, both DA and DR, due from January 2020 to July 2021, will become effective in September. The time consumed for resumption will be pared through DA and DR arrears accruing from July 1, 2021, he added.