One Indirect Electoral Promise Towards Improvement of Pensioners 7 constitutional rights have been announced according to the 7th Pay Commission in adding more pensions over and above what are normally given. Under this notification by the government, benefit will directly accrue to pensioners above 80 years. Currently, while discussions on the 8th Pay Commission are still going on, on the other hand, the government issued a notification for the old-age pension to benefit the pension market. So let us look at who else falls in the benefitting category with this new decision and what the new rules say.
Important Announcement By The Govt .For Pensioners
Another important announcement was made by the central government for retired employees. The government has issued a notification concerning the 7th Pay Commission in relation to its pension policies. Henceforth, pensioners of 80 years and older will be eligible to receive the additional pension. This decision has been taken by the Department of Pension and Pensioners Welfare (DoPPW). Under this, expenses on behalf of the government on extra pension in nature of compassionate allowance will be extended to retired officials above the age of 80 years.
Current DA On These Lines
Dearness Allowance (DA) is an extra amount which the employees get over the basic salary. It is paid on the basic salary to bridge the gap which inflation creates while estimating the monthly income of the employee. At present, the central government gives 53% DA against the basic salary.
What Is The Increase Expected In DA?
Index figures for AICPI-IW, which form the basis for having increased the rate of dearness allowance for the government employees, in accordance with the recommendations of the Seventh Pay Commission, are daily being monitored. For the increase in dearness allowance, for the government employees, a reasonable estimate is around 2% w.e.f January 1, 2025, which seems about right because of downward spirals noticed in very recent months onwards and running year onwards on the AICPI-IW index data.
The Expected Salary Increment Shall Be Considerable
A 2% hike in Dearness Allowance (DA) will increase the salaries of entry-level employees-June 18, responsible occupations and various roles, namely multi-tasking staff whose basic salaries are Rs 18,000-could see an increase of Rs 360. Presently, this class of employees whose basic salary is 18,000 is presently receiving Rs 9,540 as DA (53%)-increased by a mere 2%; they would get Rs 9,900 as their DA, making their salaries rise by Rs 360. However, had the increase been 3%, they would have gone home with Rs 540 more with their DA rising to Rs 10,080. A decision to hike DA will be in effect from January 1, 2025, and the employees will receive the arrears from this date.
Also Read: Unified Pension Scheme Update: Centre’s Stand On Making UPS Compulsory For States