7th Pay Commission : Know the impact of DA restoration on the 7th CPC pay matrix

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7th Pay Commission : Know the impact of DA restoration on the 7th CPC pay matrix



7th Pay Commission : Know the impact of DA restoration on the 7th CPC pay matrix


The ministry has stated that central government employees’ Dearness Allowance (DA) and central government pensioners’ Dearness Relief (DR) will be reinstated on July 1. 

That being said, the settlement of DA and DR arrears with effect from January 1 are pending. It is worth noting that the Centre halted the DA and DR of central government employees and retirees last year due to the Covid-19 epidemic.

The proposed conference between the CGS representative authority, the National Council of JCM, and central government authorities on May 8, 2021, was suspended owing to the Covid-19 epidemic, and a new date has not been set.

According to sources from the Finance Ministry, the Centre is expected to start paying the dearness allowance (DA) to central government employees prospectively from July 1, 2021, instead of retrospectively with arrears. But central government employees are still unsure if they will get their DA arrears. 

Currently, three DA instalments are pending: 4% from January 1, 2020 to June 30, 2020, 7% (4 per cent plus 3% from July 1, 2020) from July 1, 2020 to December 31, 2020, and 11% (7 per cent +4% from January 1, 2021) from January 1, 2021 to June 30, 2021. Let’s look at the following math to determine how much an employee would miss if they don’t get their arrears.

The minimum Grade Pay of a Level-1 employee under the 7th CPC is Rs 1800, and his basic salary varies from Rs 18,000 to Rs 56,900. 

The minimum arrear that a Level-1 employee will receive is Rs 23,760, which is 4 per cent of Rs 18,000 for 6 months plus 7 per cent of Rs 18,000 for 6 months plus 11 per cent of Rs 18,000 for 6 months. 

Likewise, if a Level-1 employee’s basic salary is Rs 56,900, the total arrears will be Rs 75,108, which is equal to 4% of Rs 56,900 for 6 months plus 7% of Rs 56,900 for 6 months plus 11% of Rs 56,900 for 6 months. 

A central government employee’s DA arrears range from Rs 23,760 to Rs 56,900 on the Level-1 7th pay commission pay scale, according to the sources of media.

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