7th Pay Commission: After family pension, Modi government BIG relief on DA for central government employees likely soon, pensioners to benefit too

7th Pay Commission: After this almost three-fold jump in family pension, the Centre is mulling to provide relief to the central government employees on Dearness Allowance (DA) soon

Earlier in a far-reaching reform regarding family pensions, the government has raised upper ceiling from Rs 45,000 to Rs 1,25,000 per month. Source: Reuters

Central government recently raised upper ceiling for family pension from Rs 45,000 to Rs 1,25,000 per month to provide 'ease of living' for the family members of the deceased employees and provide adequate financial security to them. After this almost three-fold jump in family pension, the Centre is mulling to provide relief to the central government employees on Dearness Allowance (DA) soon.

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It is reported that the Central government might be rewarded for their patience and get double bonanza ahead of Holi and their April salary may reflect 25 percent DA

As the central government employees' DA was curtailed by the Narendra Modi government to mitigate challenges posed by the Covid 19, it is learnt that government might compensate for the loss period, taking the DA for January to June 2021 at 25 per cent.

This needs to be understood from announcement of All India Consumer Price Index (AICPI). After the announcement of All India Consumer Price Index (AICPI), the central government employees are eagerly waiting for the Dearness Allowance (DA), linked to 7th CPC (Central Pay Commission), for January-June 2021 period. Since DA is directly linked to their Travel Allowance (TA) and arrears, they cannot wait for the announcement to be made by the Modi Government.

Now, since the central government servants (CGS) are waiting for their DA regularization too as their DA has been frozen since July 2020, which is proving to be a hurdle in addition to arrears in their monthly salary.

As per the AICPI data, the Narendra Modi Government may announce 4 per cent DA for January to June 2021 period that means their DA would become 25 per cent of their basic monthly salary (17+4+4) once the DA is restored. As an additional 4 per cent DA for July to December 2020 is still not added in their monthly salary.

As per the 7th Pay Commission rules, central government employees Travel Allowance (TA) will automatically rise once the DA is announced. So, the central government employee's monthly salary will grow many folds once the DA is announced.

Like central government employees, around 58 lakh retired central government pensioners are awaiting for the Dearness Allowance (DA) announcement as it is directly linked to their Dearness Relief (DR). They are also expected to get the same kind of monthly pension hike once the DR is restored.

Earlier, increasing the family pension in case of death of both parents of a child, he/she is eligible to draw two family pensions. Now this amount has been hike and clarifications in this regard has been issued too.

Union Minister of State (Independent Charge) DrJitendra Singh had said that in a far-reaching reform regarding family pensions the upper ceiling has been raised from Rs 45,000 to Rs 1,25,000 per month. He said, the move will bring “Ease of Living” for the family members of the deceased employees and would provide adequate financial security to them.

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