Central government officials expect more good news as the government tries again to raise Dearness Allowance (DA). Previously, the national government had increased the national government workforce by 28%. However, new reports suggest the DA will rise to another 31%. The DA, which was previously 17%, has been raised to 28% and is expected to take effect from July 2021. Previously, there were leading indicators that the government wanted to increase the DA by an additional 3%. This increase means that civil servants and retirees will not only see an increase in DA, but also in their total salary.
Dearness allowance had already been increased in January 2020, where the government increased it by 4%, followed by an additional 3% in June of this year. In January of this year, the DA rose another 4% and stayed at 17%. after an 11% increase, it remained at 28%. It should be noted that the June 2020 1DA increase is not yet complete, but the June CI-CPI data suggests another 3% increase. Please also note that for the period January 1, 2020 to June 30, 2021, the government will not pay DA arrears to central government employees and approximately 65 million retirees across India. In order to relieve the workers, the center had previously introduced variable pay (VDA), which was set at a range of Rs. 105 to Rs. 210 per month. The tariffs were valid from April 2021. At that time, approximately 1,500,000,000 employees would benefit from them.
Before all of these changes took effect, the DA was temporarily frozen for about 18 months due to the Covid-19 pandemic and its impact on the health of the economy. In light of these new increases, some states are also increasing their high rates for their government employees. These states include Uttar Pradesh, Jammu and Kashmir, Jharkhand, Haryana, Karnataka, Rajasthan and, more recently, Assam. most of them had increased the DA for civil servants by about the same 11% as the farewell government.
The Department of expenditure List recently issued a memorandum in early August on the revised rate of dearness allowances for employees of central government and central self-government bodies. The memo and the changes in which it would apply to the above employees in the above position who continue to receive their salary in the previously amended salary class under the Fifth pay commission and the Sixth pay commission.
In the note, the ministry said that no arrears will be paid by DA to employees for the period from January 1, 2020, to June 30, 2021. 2022 June 30, 2021, for the implementation of the fifth pay and the commissioning of the sixth pay commission, would remain unchanged. He also said employees would continue to receive 312 submissions for the fifth pay commission from laid-off employees less than the sixth pay commission would receive 164%.
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