7th Pay Commission: Benefits given to central govt employees before June 26 meet

  • The Central government, much to the cheer of its employees, will get increased medical reimbursement, travel allowance (TA), and pension benefits under National Pension Scheme (NPS) along with House Building Advance (HBA) benefits, according to a report by Zee Business.
The meeting for 7th Pay Commission is scheduled to be held on June 26(Reuters)
The meeting for 7th Pay Commission is scheduled to be held on June 26(Reuters)
Published on Jun 25, 2021 07:37 PM IST
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Byhindustantimes.com | Written by Shankhyaneel Sarkar | Edited by Avik Roy, Hindustan Times, New Delhi

Central government employees are hopeful regarding the meeting on June 26 of the Seventh Pay Commission meet and the probable announcement regarding the dearness allowance (DA). Central government employees have not received DA for the last one-and -a-half years. The DA is likely to surge to 28% due to the three instalments which employees have not received. Central employees get 17% DA currently.

The Central government, much to the cheer of its employees, will get increased medical reimbursement, travel allowance (TA), and pension benefits under National Pension Scheme (NPS) along with House Building Advance (HBA) benefits, according to a report by Zee Business.

Boost in Travel Allowance

The government increased the time limit for submitting the TA claims from 60 days to 180 days before the decision regarding the hike in DA and Dearness Relief (DR) was announced. The orders regarding the boost will be effective from June 15, which is the date of the issue of the order.

The office memorandum mentioned that the extension of time-limit for submission of TA claims in journeys undertaken by retired employees and their families for going to their hometowns or place of settlement post retirement since retired government officials faced difficulties while claiming reimbursement of TA on retirement within a period of 60 days of completion of their journey.

Medical reimbursement boost

Employees of Navodaya Vidyalaya School (NVS) will get increased medical reimbursement, along with DA, according to a statement released by the Union ministry of education. The limit of the medical claims of NVS principals has now been increased from 5,000 to 25,000. This allowance will be made available to employees when availing treatment in any government hospital or any hospital owned by the central government. The entire family is also entitled to this benefit.

NPS and Pension Benefits

According to Rule 10 of the Central Civil Services (Implementation of NPS) Rules, 2021, employees of the central government who are covered under the National Pension System (NPS) are now eligible for benefits from the pension corpus deposited under the old pension scheme (OPS) and the NPS in the event of their demise. The family however cannot avail this benefit.

In case of the central government employee not choosing this option, the benefit under the old pension scheme will be available automatically for the first 15 years of the service. Following this the employee will have the option of the default NPS. The default option for the OPS is valid till March 2024 - even if the government employee has completed 15 years of service as per these rules.

House Building Advance (HBA) benefit

The Union ministry for housing and urban affairs in an office memorandum had earlier announced that central government employees, who have availed HBA benefit from October 1, 2020 will pay 7.90% basic interest on the advance. The rate of interest on HBA to the employees will now be at 7.90% from October 1, 2020 to March 31, 2022.

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Tuesday, November 30, 2021