Salary change from 1st June?

Increase in salary

Since the time covid has attacked India and the world, nothing good has happened. Except the environmental healing. But can we ignore the hardship faced by us? Can us? No right.

So Government of India came up with an idea of Increasing the salary of Government Employees, by Increasing their DA.

They were supposed to be  meetings to be held between the National Council of JCM headed by Central Government Employees (CGS) and central government officials from the Ministry of Finance and Department of Personnel and Training in the month of June.

Although they were supposed to be held in May but got delayed due to global pandemic, lockdown and many more reasons.  Now, the dates are revised and hopefully the meeting will be held by the 2nd or 3rd week of June.

According to tax and financial experts as well as central government employees, restoring DA will have a good influence on central government employees’ retirement corpus, such as PF and gratuity, as their DA will increase from the current 17 percent to at least 28 percent. The restoration of Dearness Allowance (DA) for central government employees will begin on July 1st. The Ministry of Finance’s Minister of State (MoS) made an announcement in the Rajya Sabha in March 2021, and the centre has already made a declaration in this regard.

Read Also: How to calculate TDS on salary as per section 192 of Income Tax

What would be the expected hike? And where increment can be seen.

So as per the government officials, the expected would be in DA of 3.5 %, which would be up to 4 % of the basic salary of Central Government Employees.

One Expert said that“A central government servant’s PF contribution is calculated on the basis of one’s basic salary plus DA. As the DA will go up from existing 17 per cent to around 28 per cent, there will be rise in employee and employers contribution in monthly PF contribution. This will lead to rise in PF balance in the long-term.”

The above-mentioned is as per the 7th pay commission held a few days back.

Will it be applicable to all employees?

No, it’s only for government employees.

What would the increase in DA result in government’s pocket?

Till now, it’s said that it won’t leave a deep impact on Government’s pocket. Expenses will be bearable.

Could it be postponed again?

Yes, there are high chances that it can be implemented from 1st July instead of 1st June 2021.

So it can be said that, government is looking forward towards the hardships faced by us and they’re trying their best to minimize it .

And soon we can hear the announcement of Salary hike.

Read Also: Everything about Form 16 under Income Tax


The author of the above article is Sneha Bhalotia.

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