7th pay commission: From July 1, the salaries of central employees will increase, find out how and how much
The eagerness of the central government employees and pensioners to get their salaries and pensions on the basis of the Seventh Pay Commission has now come to an end.
From July 1, you will be eligible for the benefit of inflation allowance with increase. Central employees currently receive a 17 per cent inflation allowance.
Last year the Union Cabinet announced an increase in the DA of government employees but stopped it because of Corona. Given the current Corona situation, the finance ministry had decided to stop the hike in inflation allowances for more than 50 lakh central government employees and more than 61 lakh pensioners by June 2021.
This came into force on January 1, 2021. Corona caused the central government to withhold three installments of inflation allowance paid to pensioners on January 1, 2020, July 1, 2020 and later on January 1, 2021. The three installments together will increase the total DA to 28 per cent, including 3 per cent on 1 January 2020, 4 per cent from 1 July 2020 and 4 per cent from 1 January 2021.
According to the Ministry of Finance, the remaining installment of inflation allowance for the above employees will be included in the revised rate from 1 July 2021. Employees are given an inflation allowance in view of rising inflation.
Twice this year from January to June and later from July to December. The government estimates the average inflation in 6 months to determine the DA. According to AICPI, the average inflation rate for July-December 2020 is 3.5 percent.
As a result, it is expected that the minimum inflation allowance for the period between January and June 2021 will be 4 per cent. When the DA is revealed, the TA reconciles with it. Therefore an increase in DA correlates with an increase in TA. Similarly HR and medical compensation are determined. The total monthly salary of any central employee is calculated after all the allowances have been fixed.
The Finance Ministry said that in view of the situation arising out of the corona, it has been decided that the central government would provide additional installments of costly allowances to employees and inflation relief to central government pensioners.
Arrears for January 1, 2020, July 1, 2020 and January 1, 2021 are currently unpaid. While DA and DR will be paid at the current rate. In addition to arrears, salaries may also be increased. This is because the inflation allowance has gone up by 11 per cent and is now 28 per cent.
This way the salary will increase
According to sources, according to the salary metrics, central employees currently get a minimum salary of Rs 18,000. Existing 15 per cent inflation allowance is expected to be applied in the existing pay metrics. According to the existing matrix, an inflation allowance of Rs 2700 per month will be added to the salary.
The fitment factor for central employees is now 2.57. In addition to benefits such as Mongwari allowance, travel allowance, and HRA, central employees are determined by the basic salary fitment factor. DA, TA, HRA and medical benefits are determined after the salary is determined.
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