This piece of stories might come as a Holi Dhamaka for the central government employees as there is perhaps an announcement of the Dearness Allowance (DA) hike.
This comes after the government introduced that the employees will get full advantages of dearness allowance beginning July 1, with all of the three pending installments being restored prospectively.
The three installments of dearness allowance for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020, and January 1, 2021, had been frozen in view of the COVID-19 pandemic.
This would ultimately give a whopping rise of the central government employees’ salaries as their current DA of 17 per cent would abruptly turn into 28 per cent (17 + 3 + 4 + 4). But there’s a catch. An worker wants to keep in mind the 7th CPC Fitment Factor of two.57 whereas calculating the possible rise in month-to-month salary.
According to the 7th Pay Commission, if an worker attracts a month-to-month primary salary of Rs 21,000 then one’s month-to-month 7th CPC salary will be Rs 53,970 (Rs 21,000 x 2.57).
Also, the government servant is eligible for numerous 7th Pay fee perks like DA, HRA, Travel Allowance (TA), medical allowance, and many others.
This determination of DA restoration will additional enhance one’s PF passbook stability too. As per the 7th pay fee cost guidelines, a central government’s PF contribution is calculated on the idea of primary salary plus DA.
