7th Pay Commission: 18- Months DA Arrears Update; Employees to Get 34% DA Hike

The central government employees in India receive Dearness Allowance (DA) twice a year, or once every six months. There may probably be some good news on DA for the second half of this year for the central government employees. Employees of the central government currently receive 34% DA.

There has been a significant change to the annual Dearness Allowance to House Rent Allowance throughout the past year (HRA). What has happened to the DA arrear, which was due from June 2020 to June 2021, is the real mystery, though.

Shiv Gopal Mishra, Secretary (Staff Side) of the National Council of JCM, has continuously claimed that the government made the decision to freeze the dearness allowance.

According to him, the government must make up for the loss brought on by the freeze. He stated that there have been continuous conversations with the government regarding the DA arrears for the last 18 months. Government must reach a compromise through negotiation.

The central government employees in India receive DA twice a year or once every six months as a countermeasure to inflation.

However, if it does decide to pay it, central government employees will receive a lump sum payment for 18 months along with an increase of 11%.

The Pay Commission was established by the Indian government to decide on the pay for public servants. Seven pay commissions were established after India gained its independence to examine and make recommendations about the compensation of all civil and military branches of the government.

P Chidambaram, the previous finance minister, announced the creation of the 7th Pay Commission on September 25, 2013. It received Dr. Manmohan Singh's approval (Prime Minister of India from 2004 to 2014). Justice Ashok Kumar Mathur served as the Commission's founding chairman. Its recommendations were supposed to take effect on January 1, 2016, but because of some issues, there was a delay in their execution.

The 7th Pay Commission report, which recommended an overall pay increase of roughly 23.55 percent for more than 1 crore government employees, was approved by the Cabinet in June 2016.