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7th Pay Commission Latest Update: DA increase, changes in LTC, salary hike, arrears clearance, DR benefits – Details here

7th Pay Commission: Insurance of Rs 5 lakh, illness loan of upto Rs 1 lakh for this state employees
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Srinagar, Mar 02: As lakhs of central government employees are waiting for the announcement of hike in Dearness Allowance (DA), the Prime Minister Narendra Modi-led government at the Centre has decided to allow all 7th Pay Commission (7th CPC) beneficiary employees in the central as well as the state government to claim their new insurance policy premium in the LTC Scheme.

LTC scheme relaxation

Earlier, due to COVID-19 pandemic, the Centre had declared relaxation in Leave Travel concession (LTC) Scheme that allows government employees to claim income tax benefits on expenses made between October 12, 2020 to March 31, 2021 on purchase of goods and services that attract GST rate of 12 per cent or more instead of travel expenses.

Life insurance also included in LTC Scheme

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The Centre has also included life insurance in the LTC Scheme among the services mentioned above.

Update on DA

If the Centre decides to increase the DA by 4 percent and give 4 per cent pending arrears, the new DA for January to June 2021 will add up to 25 per cent.

Increase in salary

If the Centre increases the DA then the salary and other benefits of central government employees will go up significantly.

What about Dearness Relief (DR)

The central government employees are waiting for the hike in DA because it is directly linked to their Dearness Relief (DR).

Arrears clearance

Under the 7th Pay Commission rules, government employees will get arrears for late DA announcement. For example, if the DA is announced in February, then the employees will get arrears for January 2021 month as the DA is meant for January to June 2021 period.

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