7th Pay Commission latest update: Big blow to central govt employees! TA not to rise from July 1?

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New Delhi: 7th Pay Commission latest updates –Over 50 lakh central authorities staff and greater than 65 lakh pensioners who’ve been ready with baited breath for the implementation of hike in Dearness Allowance (DA) and Dearness Relief (DR) from the month of July, could not be headed for a hike of their Travel Allowance (TA), as per media studies. 

According to a report within the Live Mint, the central authorities staff TA will not be elevated as a result of their present DA is not 25 p.c or above, which as per the pay matrix calculation rule of the 7th Pay Commission is a requisite. At current, central authorities staff get DA of 17 per cent. This stage of DA turned efficient from July 2019 with additional revision due from January 2020. But this together with subsequent two different revisions have been suspended due to Covid. Last yr, the Union Cabinet had authorized a 4 per cent improve in DA for presidency staff and pensioners to 21 per cent. This was to be efficient from January 1, 2020. However, in wake of the pandemic the disbursement of DA at elevated charges was suspended together with DR for the pensioners.

Previously media studies citing All India Consumer Price Index (AICPI) knowledge launch, between January and June 2021, had mentioned at the least DA will be elevated by 4 p.c. The studies additional talked about that after the DA is reinstated, the Dearness Allowance of the central staff could improve from 17 p.c to 28 p.c. This features a 3 p.c improve in DA from January to June 2020, a 4 p.c improve from July to December 2020, and a 4 p.c improve from January to June 2021. That means the whole DA calculation will probably be (17 + 4 + 3 + 4) 28 p.c.

Minister of State for Finance, Anurag Thakur had in March this yr instructed Parliament that the staff will get full advantages of dearness allowance beginning July 1 and all of the three pending installments will probably be restored prospectively. However, what could upset the central authorities staff is that any improve in DA from July 1 will solely be efficient from that day, which signifies that the staff would not get any arrears on non-revision of DA for earlier interval.

The three installments of dearness allowance for central authorities staff and DR for pensioners, due on January 1, 2020, July 1, 2020 and January 1, 2021, have been frozen in view of the COVID-19 pandemic. In a written reply to the Rajya Sabha, Thakur mentioned: “As and when the decision to release the future installments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021.”

As per some studies obtainable within the media, the central authorities staff should consider 7th CPC Fitment Factor of two.57 whereas calculating the possible hike in month-to-month wage. This means as per the 7th Pay Commission Fitment Factor, if an worker attracts a month-to-month primary wage of Rs 21,000 then one’s month-to-month 7th CPC wage hike will probably be Rs 51,400 (Rs 20,000 x 2.57).





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