On March 31, after the government announced the DA raise under the 7th Pay Commission.
New Delhi: Dearness Allowance and Dearness Relief for central government employees and pensioners were recently increased by the central government. The Narendra Modi government has announced that DA and DR will be paid to salaried workers at a rate of 34 percent, up from the previous rate of 31 percent. The DA will be increased by 3% beginning January 1, 2022. In the face of rising fuel prices, oil prices, and inflation in general, the move will affect about 47.68 lakh central government employees and 68.62 lakh retirees.
The DA calculation, on the other hand, is based solely on the employee’s basic pay, with no further allowances taken into account. This means that all central government employees who are due to receive updated wages in March as a result of the DA raise would only receive the increased amount based on Basic Pay calculations.
On March 31, after the government announced the DA raise under the 7th Pay Commission, the Department of Expenditure provided a clarification on this statement.
“In the revised pay structure, the term ‘Basic Pay’ means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay, such as special pay,” the Department of Expenditure (DoE) stated in the Office Memorandum (O.M.) data.
“The Dearness Allowance will continue to be a distinct part of remuneration and will not be recognised as pay within the scope of FR 9(21”), according to the office memorandum.
According to the department, payments for Dearness Allowance including fractions of 50 paise and more should be adjusted to the next higher rupee, while fractions of less than 50 paise should be discarded.
“The payment of Dearness Allowance arrears shall not be paid before the date of salary release in March, 2022,” it stated.
The relevant head of the Defence Services Estimates will be charged with the estimates and expenditures. The Ministry of Defence and the Ministry of Railways will issue separate orders for Armed Forces members and Railway employees, respectively. These orders will also apply to civilian employees who are paid by the Defense Services, according to the memorandum.
