The central government is likely to take a final call regarding the hike in Dearness Allowance (DA) and 7th CPC Dearness Relief (DR) benefit soon. The buzz about the hike according to the 7th pay commission has been in news for some time now and the decision will bring huge benefits for nearly 52 lakh employees and 60 lakh pensioners of the Central government. Media reports suggest the hike in DA and DR are likely to arrive with the salary and pension payments from the month of September. The decision will provide a huge relief to the central government employees and pension holders.
Here we list some of the major announcements that will lift the 7th pay commission pay matrix and provide convenience and relief to employees and pension holders.
7th Pay Commission DA and DR restoration
The central government had stalled the DA in the wake of COVID-19 pandemic in 2020. However, Central government employees are now likely to get an increased DA and DR from September. The benefits will be applicable from July 1,2021, and arrears for the month of July and August will be given to the employees and pension holders. The government has been in talks with the National Council of JCM - the recognised representative platform of the employees, to reach a final acceptable decision.
House Building Advance
For government employees who wish to construct their own house, the central government had introduced the House Building Advance (HBA)benefit in June 2020. Under this scheme, the government will lend funds at an interest rate of 7.9 per cent and employees can apply for taking the benefit of these schemes till March 31 2022. Recently a revision in HBA guidelines was made while keeping the 7th pay commission pay matrix and 7th CPC approval provisions in focus.
Simplification of 7th pay commission pension benefit Process:
Easing the procedural requirement for family pension rules, the government has done away with the long procedure. Under the new changed rule, provisional family pension will be sanctioned immediately after receiving the claim for Family Pension and Death Certificate from the eligible family member without waiting for other procedures to be complete
Extension in Time limit or submission of Travelling Allowance on retirement
The central government recently extended the time limit to submit TA to 180 days from the earlier 60 days. The decision has come into effect from June 15, 2021, and is likely to provide relief for retiring employees for whom claiming TA within 60 days became a little hectic.
Pensioner to Get Pension slip through mail, SMS and WhatsApp
Keeping in mind the convenience of pensioners, the central government recently directed the banks to issue pension slips to the pensioners through SMS, Email and WhatsApp on their registered contact details. The decision will come into effect from July 1, 2021.