Dearness Allowance Hike Date 2021 for Central Government Employees: When to expect?

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Updated: June 01, 2021 10:00 AM

7th Pay Commission Pay Matrix Dearness Allowance Hike Latest News Today 2021: Amid Covid-19 pandemic, the expected DA hike for Central Government Employees is reported to be delayed further.

dearness allowance hike date 2021Dearness allowance hike date 2021 - expected to be announced soon. Representative image

7th Pay Commission Pay Matrix Dearness Allowance Hike Latest News Today 2021: Amid Covid-19 pandemic, the expected DA hike for Central Government Employees is reported to be delayed further. The National Council of JCM – Staff Side has said that the Central Government may announce DA hike for its employees in June 2021. It is expected that the upcoming DA hike would be up to 4 per cent of the basic salary of Central Government Employees.

The DA hike announcement by the Central Government is pending since January 1, 2021. Reports say that the expected DA hike has been delayed by around one month due to the ongoing second wave of Covid-19 second wave. Hence, the DA hike, which was expected to be announced by April end or in the first fortnight of May, may now be declared in June.

Dearness Allowance hike impact on 7th CPC pay matrix

The expected DA hike announcement (to the tune of 4 per cent basic salary) won’t have much impact on the 7th Pay Commission (7th CPC) pay matrix of Central Government Employees. This is because the Central Government has already frozen DA and DR benefits of Central Government Employees and Pensioners till June 2021.

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 report was first published on May 15, 2021)

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