Amidst the stressed news of coronavirus infections and spread coming from all the corners, here is good news for all the central government employees that they can cherish. Lakhs of central government employees who have been eagerly waiting for a hike in the Dearness Allowance (DA) will get a revised salary from July 1, 2021.
Though this hike in the DA was supposed to be implemented from last year itself. However, due to the Coronavirus pandemic, the government had withheld the dearness allowance (DA) and dearness relief (DR) of employees and pensioners. These increments are now all set to be released this time.
The government informed Parliament that the stalled dearness allowance (DA) and dearness relief (DR) will be resumed from 1 July 2021. With this being implemented, the increased salary will soon start coming into the accounts of millions of central employees and pensioners from July 1.
The government plans to increase the dearness allowance (DA) by 11 percent. This was, the total effect DA will become 28 percent. Currently, DA is given at a rate of 17 percent.
As reported by some of the media houses, according to the All India Consumer Price Index (AICPI) data release, between January and June 2021, at least DA can be increased by 4 percent. The reports further mention that after the DA is reinstated, the Dearness Allowance of the central employees may increase from 17 percent to 28 percent. This includes a 3 percent increase in DA from January to June 2020, a 4 percent increase from July to December 2020, and a 4 percent increase from January to June 2021. That means the total DA calculation will be (17 + 4 + 3 + 4) 28 percent.