7th Pay Commission Latest News Today: The Central government on Wednesday made a big announcement and issued a clarification on Dearness Allowance (DA) for gratuity calculation and leave encashment of retired government employees. This clarification is meant for the government pensioners who retired between 1st January 2020 to 30th June 2021.Also Read - 7th Pay Commission: Maharashtra State Road Transport Corporation Hikes DA of 95,000 Employees to 17% Ahead of Diwali

As per the clarification from the Department of Expenditure of Ministry of Finance, the gratuity and leave of the govt employees who retired during the period will be encashed without applying the frozen DA of that period. Also Read - Dearness Allowance Hike to 31 Per Cent For Central Govt Employees Effective From This Date

Putting it in simple words, the government employees who retired between 1st January 2020 to 30th June 2021, the gratuity and leave will be encashed keeping the DA installments announced for that period. Also Read - 7th Pay Commission: Good News For Central Govt Employees, Salary to Increase Up to THIS Amount | Details Here

“Keeping in view that gratuity and cash payment in lieu of leave are one-time retirement benefits admissible to employees on retirement and employees who retired during the period from 01.01.2020 to 30.06.2021 have been allowed lesser amount than what would have been calculable but for the aforesaid orders of this Ministry dated 23.04.2020 and 20.07.2021, the matter has been considered sympathetically with a view to allowing the same to such employees,” the order from the department stated.

According to the letter from the department, the government employees who retired from 1st January 2020 to 30th June 2020, their DA will be considered 21 per cent (17 + 4) whereas those who retired from 1st July 2020 to 31st December 2020 – their DA will be considered 24 per cent (17 + 4 + 3).

In the meantime, the government employees who retired from 1st January 2021 to 30th June 2021, their applicable DA will be 28 per cent (17 + 4 + 3 + 4). However, this enhanced DA will be applicable for gratuity calculation and leave encashment only.

Due to the COVID pandemic, the Centre had decided to freeze DA and DR benefits for central government employees and pensioners. However, in July this year, the DA was restored.