Central govt employees may start getting more salary from next year

Your take-home salary may be impacted from April 2021. Know how?
The new compensation rules, a part of the Code on Wages 2019, are expected to become effective from the next financial year starting in April 2021.

7th Pay Commission: Central govt employees may start getting more salary from next year

While the COVID-19 pandemic has resulted in a massive economic slowdown, forcing the government to slash to Dearness Allowance (DA) at the previous rate, there might be some good news waiting for the employees. The central government employees and pensioners were being paid at the rate of 21% but due to the COVID-19 crisis and the subsequent effect on the state exchequer, the DA was reduced to 17%.

This arrangement has been implemented till June 2021. After that, the government might give relief on DA and the employees will start getting more salary, while the pensioners will get more pension.

Notably, the Dearness Allowance of central employees is increased in the month of July every year. But in April, a decision was taken by the Centre not to hike it this year in wake of the pandemic.

Also Read- Govt freezes Dearness Allowance hike for CPSE employees till June 30

For the uninitiated, DA is given to improve the standard of living of government employees. It is increased twice a year. This is done so that the level of standard of living of employees is not affected after inflation increases.

It may also be noted that after the reduction on DA, more than 30 lakh employees have been paid Diwali bonuses on the occasion of Dussehra. Along with this, relief has also been given on LTA and LTC. The LTC Cash Voucher Scheme was announced on October 12 by the Central Government.

Under this, employees can purchase services and goods that attract 12 per cent or more GST. Till now, the central employees were given LTC benefits only on travelling.

Recently, there was finally some good news for the Delhi government employees after Deputy Chief Minister Manish Sisodia announced a much-needed increase in monthly Dearness Allowance (DA) for unskilled, semi-skilled, skilled and other category workers.

Sisodia, who is also in charge of the labour department, informed that the Aam Aadmi Party (AAP) government will make sure that the workers get their salaries on time even during the coronavirus pandemic.

The revised minimum wages, including the DA, will be applicable in all scheduled employments, from October 1.

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This story has not been edited by SightsIn Plus, published from a wire agency feed without modifications to the text. Source


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