Dearness Allowance Hike Date for Central Government Employees: When to expect?

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Updated: July 14, 2021 3:42 PM

7th Pay Commission Pay Matrix Dearness Allowance Increase News: Amid Covid-19 pandemic, the expected DA hike for Central Government Employees is reported to be delayed further.

Currently, there are about 48.3 lakh Union government employees and 65.3 lakh pensioners. The DA/DR increases are in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.Currently, there are about 48.3 lakh Union government employees and 65.3 lakh pensioners. The DA/DR increases are in accordance with the accepted formula, based on the recommendations of the 7th Central Pay Commission.

7th Pay Commission Pay Matrix Dearness Allowance News: Amid Covid-19 pandemic, the expected DA hike for Central Government Employees is reported to be announced soon. Earlier, the National Council of JCM – Staff Side has said that the Central Government may announce DA hike for its employees in June 2021. It was expected that the upcoming DA hike would be up to 4 per cent of the basic salary of Central Government Employees. However, now it has been reported that the DA rate for Central Government Employees may go up to 30 per cent of basic pay.

Read: Dearness Allowance Increased to 28% for Central Government Employees

DA increase date

The DA hike for the Central Government Employees is pending since January 1, 2020. Reports said in May 2021 that the expected DA hike had been delayed by around one month due to the ongoing second wave of Covid-19 second wave.

The DA hike, which was expected to be announced by April end or in the first fortnight of May, may now be declared in July. However, Central Government Employees may get increased salaries only before Dussehra (October 15, 2021). 

Dearness Allowance hike impact on 7th CPC pay matrix

The Central Government had said early this year that DA and DR benefits for employees and pensioners would be restored from July 2021. This means, even if the DA hike due since January 1, 2021 is announced now, it would be restored only from July 1, 2021.

The Union Government had informed the Upper House of the Parliament in a written reply that as and when the decision to release the future instalment of DA would be taken, the rates of DA as effective from 01-01-2020, 01-07-2020 and 01-01-2021 would be restored prospectively. Anurag Thakur, Minister of State in the Finance Ministry said in March 2021 that the previous three rates will be “restored prospectively and will be subsumed in the cumulative revised rates effective from 01-07-2021.

(This is an updated version of the report first published on May 15, 2021)

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