The Central Government turns down the plan to increase the monthly gross basic pay concerning government employees. The government has made this denial since the Dearness allowance (DA) was restored recently.
Pankaj Chaudhary, the Union Minister of State in the Finance Ministry, in response to a query raised in the Rajya Sabha, mentioned that the Central Government is not looking at increasing the gross basic pay of the government employees. Pankaj Chaudhary also mentioned that the fitment factor of 2.57 had been applied to all employees uniformly for fixing the pay in the revised pay structure as per the recommendations made in the 7th Central pay Commission.
The Ministry of Finance had mentioned in a statement that three additional instalments concerning DA to Central Government employees and Dearness Relief (DR) to pensioners, which were pending from 1 January 2020, 1 July 2020 and 1 January 2021, had been frozen.
The government increased DA concerning Central Government employees and DR concerning pensioners starting 1 July 2021 to 28%, with an increase of 11% over the current rate of 17% of the basic pay/pension.
For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
