7th Pay Commission Dearness Allowance (DA Hike) Latest News: The Finance Ministry has issued the order to implement the 28% DA hike for Central Government Employees. According to the Ministry of Finance, the added directive of 28% DA does not apply to employee and military trains. Specific instructions for them will be issued by each Ministry.
The Government has enhanced the DA payable to Central Government Employees from the prevailing rate of 17% to twenty-eight with effect from 1st July 2021. The rise considered the extra installments arising on 01-01-2020, 01-07-2020, and 01-01-2021. Although the DA rate is 28% as of 1st July 2021, it will remain 17% from 01-01-2020 to 06-30-2021.
In an Office Memorandum dated 20th July 2021, the Department of Expenditure (DoE), Ministry of Finance, said that the term basic pay within the revised pay structure would mean the pay drawn within the prearranged Level within the Pay Matrix as per 7th CPC recommendations accepted by the govt. But it doesn’t include the other sort of pay like special pay etc.
For the Central Government Employees, the DoE further said that the DA would still be a distinct element of remuneration and can not be treated as pay within the ambit of FT 9 (21).
In its latest order, the DoE has also clarified that the payment on account of DA involving fractions of fifty paise and above could also be roundoff to following higher rupee, and therefore the fractions of but 50 paise could also be ignored.
Separate DA hike orders for soldiers personnel, Railway employees
The DA walker model for private, government employees also applies to government employees paid by Defence Services Estimates.
However, for the march of soldiers and railway personnel, different orders will also be issued by the Ministry of Defence and the Ministry of Railways.
“The instructions must also apply to government officials paid with Defence Services Estimates and therefore expenses will be paid to the appropriate Head of Defence Services Estimates. According to military and rail personnel, the various regulations will be issued by the Department of Defence and the Department of Railways, respectively,” said the DoE.
Moreover, the department has made it clear that the payment on account of DA involving fractions of fifty paise and above could also be roundoff to subsequent higher rupee and therefore the fractions of but 50 paise could also be unnoticed.