Recently, an order has been issued by the Central Government to increase the DA by 28 percent. But the employees of two government departments will not get its benefit yet. Orders will be issued for them from the concerned department.
DoE issued a new order regarding DA hike
Recently, the government gave relief to the employees hoping for an increase in Dearness Allowance (DA) for a long time and decided to give their dues to the DA increase. However, railway employees and armed forces personnel will have to wait a little longer for this. In fact, separate orders will be issued for them by the respective ministries on this issue. After this, they will be able to get the benefit of increased DA.
In its latest order, the Department of Expenditure (DOE) of the Ministry of Finance said that the term ‘basic pay’ in the revised pay structure would mean “pay drawn at the prescribed level in the pay matrix” i.e. 7th CPC recommendations approved by the government. However, it does not include any other type of salary like special pay etc. Separate orders will be issued by the Ministry of Defense and the Ministry of Railways in respect of Armed Forces personnel and Railway employees.
DoE also issued a memorandum in this regard and said that DA will continue to be “a specific element of remuneration” and will not be treated as salary in the purview of FT 9(21). Further, DA payment includes fractions of 50 paise and above, it will be included in the next higher rupee.
28 percent increase was ordered
It is to be known that the Finance Ministry has issued an order to implement 28% Dearness Allowance (DA) increase for Central Government employees from July 1, 2021. In this increase, the additional installments from 1 January 2020 to 1 July 2020 have been included. Till now DA was being given at the rate of 17 per cent.
HRA also increased
Apart from Dearness Allowance, the government has also increased the House Rent Allowance (HRA) to 27 per cent. In fact, the Department of Expenditure had issued an order on 7 July 2017 in which it was said that when the Dearness Allowance crosses 25 per cent, the house rent allowance will be revised. Since July 1, the dearness allowance has increased to 28 percent, due to which the house rent allowance has also been revised.
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