7th Pay Commission: DA set to return, pending instalments to be restored prospectively

New Delhi, Mar 18: The benefits of the Dearness Allowance under the 7th Pay Commission will be restored from July 2021. This would mean that the Central Government employees would get an increased salary.

Minister of State for Finance, Anurag Thakur told Parliament that the employees will get full benefits of the DA starting July 1 and all pending instalments would be restored prospectively.

In March 2020, the Union Cabinet chaired by Prime Minister, Narendra Modi had approved to release an additional instalment of DA to the CG employees and Dearness Relief to pensioners with effect from January 1 2020.

The Ministry of Finance said that there will be an increase of the Basic Pay/Pension to compensate for the price rise. The impact on the exchequer as a result of the DA and DR was fixed at Rs 12,510.04 crore per annum and Rs 14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021).

This would benefit around 48.34 lakh CG employees and 65.26 lakh pensioners.

In another development relating to the 7th Pay Commission, the government decided to extend the Disability Compensation for all serving employees.

This decision would go a long way and especially provide relief for those in the central armed police force (CAPF), personnel of the BSF, CISF, BSF etc.

"In a significant New Year decision, "Disability Compensation" has been extended for all serving govt employees, if they get disabled while performing their service & are still retained in service. This also includes those who were appointed on or after 1.1.2004 & covered under NPS," Union Minister, Jitendra Singh said.

"In a significant New Year decision, "Disability Compensation" has been extended for all serving govt employees, if they get disabled while performing their service & are still retained in service. This also includes those who were appointed on or after 1.1.2004 & covered under NPS," Union Minister, Jitendra Singh said.

The decision relating to the NPS would also benefit employees and provide ease of living for government servants even after they have superannuated and become pensioners or family pensioners or elder citizens, he also said.

The 2009 order said that those government servants appointed on or after January 1 2004 and covered under the National Pension Scheme (NPS) do not get such compensation.