The central government had made a big announcement for 52 lakh employees in the country. Central Government announced that Central Government Employees (CGS) are engaged in calculating how the matrix of the 7th Pay Commission will be changed. From July 1, 2021, the DA benefit of Central Government employees will be restore as per the announcement of Narendra Modi government, . Finance Minister Anurag Thakur had informed the Rajya Sabha in this regard last month.
According to the All India Consumer Price Index (AICPI), the minimum DM is likely to increase by 4 per cent between January and June 2021. Salary will increase for Central Government employees
Increase in your salary
The Center has announced plans to reduce all the three pending DA installments from July 1, 2021. After the re-establishment of DA, the DA of central employees may increase from 17 per cent to 28 per cent. This includes a 3 per cent increase in DM from January to June 2020, a 4 per cent increase from July to December 2020 and a 4 per cent increase from January to June 2021.
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About the salary calculation
According to the rules of the Seventh Pay Commission, the salary of a Central Government employee is divided into three parts namely basic salary, allowances and deductions. Net CTC is a central government employee who is the 7th CPC fitment factor and adds the basic salary multiplied by all allowances. However, net salary is the difference between net CTC and deductible items like PF contribution, gratuity etc.
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Impact on PF and gratuity
The increase in potential DA will also affect the monthly PF, gratuity contribution of the Central Government employee. The contribution of CGF to PF and gratuity will be calculated on the basis of DA along with basic salary. The DA will increase from 1 July 2021, affecting the employee’s monthly PF and gratuity contribution as well. This means more money in retirement-oriented funds like PF and Gratuity.
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benefit for Retired central employees
Government banned Dearness allowance due to the corona virus outbreak. Raising the DA will also increase the DR to the same extent. retired Central Government employees will get Dearness Relief (DR) after 1st july 2021.
Government kept salary revision on hold during corona pandemic. Recently,Bank unions revised their salary structure. Central government employees were waiting for update about Dearness allowance. Corona pandemic affected many employees financially. Many central government employees are working on Covid duty during pandemic. Many suffered Covid 19 during official duty. Even some employees got late payment during their duty. Specially, Doctors ,Nurses and healthcare staff on government during covid pandemic served to patients in harsh conditions.
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But good news on Salary will increase for Central Government employees will make happy 52 lakh central government employees and their family members.
I hope this article will give you details about important information about salary revision.
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Author of this article is “Pranav Divekar”.