7th Pay Commission Allowance – An Update By Government!

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DA hike for central government employees is done within about three months. The hike is based on several factors and currently, central government employees are receiving around 17% DA. Due to radical changes in the present scenario and All India Consumer Price Index, central government employees are expecting some good news related to the DA hike from the end of the government.

The news related to dearness allowance (DA) is in the headlines, which may be interesting for central government employees. According to experts, due to rising inflation, central government employees may soon get news of an increase in their DA by the central government.

According to the All India Consumer Price Index (AICPI) data of the Ministry of Labor and Employment, inflation has increased by about 2% from January 2020 to June 2020 period. Based on this variation, experts believe that the central government may announce a 3% increase in DA to provide additional benefits to its employees. 

DA growth is planned based on the All India Consumer Price Index (AICPI) growth, and the AICPI number has increased from 330 in January 2020 to 332 in June 2020. Based on AICPIN data, central government employees expected DA to increase by 3%.

To increase the COVID-19 relief fund, the DA hike has been halted until June 2021. However, Central Government employees will get the full compounded benefit of this DA increase from July 2021 onwards, which will be provided to them by adding it to their monthly salary. 

7th pay commission DA table

Monthly CPI(IW)BY2001=100 DA% Monthly Increase
Dec 2019 330 21.43
Jan 2020 330 22.16
Jun 2020 332 24.94

 

Why has DA hike been Frozen.?

To fight against COVID-19, the government has frozen DA hike and dearness relief of pensioners by June 2021. The aim is to produce Rs 37000 crore by the end of the period so that it can be used as a COVID-19 relief fund.

Officials said about the prohibition of DA (dearness allowance) and DR (dearness relief). Even in earlier difficult times such as the COVID-19 epidemic, DA and DR have been prevented. But later, it has also been distributed to all with development.

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