7th Pay Commission Updates — Three pending installments of DA to be restored from July

Three pending installments of DA to be restored from July
Three pending installments of DA to be restored from July.

The Finance Ministry on Tuesday assured that three pending installments of Dearness Allowances (DA) of central government employees and pensioners will be restored prospectively as and when the decision is taken.

This announcement was made by the Minister for State for Finance, Anurag Thakur in Parliament. In a written reply to the Rajya Sabha, Thakur said: As and when the decision to release the future installments of Dearness Allowance due from 1 July 2021 is taken, the rates of DA as effective from 1 January 2020, 1 July 2020, and 1 January 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from July 1, 2021.

At present, central employees get DA of 17%. Last year, the Union Cabinet had approved a 4% increase in DA for government employees and pensioners to 21%. This was to be effective from January 1, 2021.

Anurag Thakur also mentioned the government has saved more than ₹37,430.08 crores from freezing three installments of DA which helped in dealing with the Covid-19 pandemic that hit the country last year.

Clarification on Special Cash Package equivalent in lieu of Leave Travel Concession

In a seperate memorandum from Ministry of Finance, below clarifications were provided:

  • On the scope of spillover to the next financial year — “As far as possible, the Claims should be made and settled before 31st March 2021.”
  • On payment details to be furnished by the employee — “Competent authority of concerned Deptt/PAO to decide on the additional document for checking the veracity of the claim. For digital payment, an employee can use a credit card of themselves, spouse or any family member.”
  • Newly recruited employees — “A newly recruited employee, whose LTC expires in December 2020, which remains unutilized, may be allowed to claim the cash package in lieu of LTC till 31st March 2021.”


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