The wait for the central administration staff (CGE) was long. CGEs have been asking for a review of the cost allowance (DA) for some time. The DA of central government employees and Dearness Relief (DR) of retirees were suspended last year following the Covid 19 pandemic. But the wait is almost over as these employees and retirees may soon enjoy the benefits of DA, DR in their September salary.
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Currently they are getting a DA at the old 17% rate, however in September they will not only get three pending DAs, but are also expected to 3% by June 2021. Although the government has yet to announce the rate. of DA for June 2021, it is very likely that it will be announced this month itself. The increase in DA was estimated according to data from the All India Consumer Price Index (AICPI) from January 2021 to May 2021. The data suggests that the DA could be increased by 3% for June 2021, said Shiv Gopal Mishra. , secretary, National JCM Council (personal side).
This means that government employees are likely to get 31 percent of the AD in September. 4% DA for January 2020, 3% for June 2020 and again 4% DA for January 2021. In addition, the probable increase for May 2021 is 3%, bringing the collective percentage in DA for central government employees to 31 % in September 2021.
Now the question is how this will be reflected in the salary of SMCs according to the 7th salary commission matrix. Well, the DA will be calculated on the base salary of a central government employee. Supposedly, if an employee receives a base salary of Rs 25,000, that means the calculation will be 31% (previously 17% + current expected increase of 14%) of Rs 25,000. As in this case here, since the actual increase in AD is 14%, CGEs receiving Rs 25,000 in base salary will increase by Rs 3,500 (14% of 25,000). Likewise, the salaries of other central government employees will be calculated.
Once the DA is increased, the DR will increase proportionately for central government retirees. In addition, other allowances (travel allowance, town allowance, contingency fund and tip) will also increase because the increase in DA is directly proportional to other allowances.
Reported by Shubham Shukla