Central government employees may have to wait a little longer for the DA hike as the announcement of increase in Dearness Allowance may be delayed.
7th Pay Commission: Central government employees may have to wait a little longer for the DA hike as the announcement of an increase in Dearness Allowance (DA) may be delayed. According to the National Council of JCM – Staff Side, the Central Government may announce DA hike for its employees in June 2021. The upcoming DA hike is expected to be up to 4 percent of the basic salary of the central government employees.
Delay in increase in DA
Explaining the reason behind the delay in DA hike, Siva Gopal Mishra, Secretary, Staff Side, said that they are in constant touch with the Department of Expenditure and Department of Personnel and Training (DoPT) officials of the Ministry of Finance.
He said the delay in DA hike announcement is mainly due to the ongoing second wave of Covid-19 in the country, so everything has moved a month ahead. The DA hike, which was supposed to be announced by the end of April or the middle of May, has now shifted to June.
Earlier, Minister of State (MoS) for Finance, Anurag Singh Thakur had said that the three installments of dearness allowance will start to be paid from July 1, 2021.
In a written reply in the Upper House of Parliament regarding the payment of DA, Anurag Thakur stated the three pending DA installments of the Central Government servants will be 'subsumed' and the revised DA rates will become effective from 1st July 2021.
So far, there has been no update on three pending DA installments from January 1, 2020, July 1, 2020, and January 1, 2021.
Will DA hike impact 7th Pay Commission?
Mishra said that this will not affect the 7th CPC pay matrix of central employees, as the central government has already freezed the DA and DR of employees and pensioners till June 2021.
How much DA will increase?
In response to the question of how much DA is expected to increase, Mishra said that according to the calculation of DA increase, the average inflation for July to December 2020 has been around 3.5 percent, which means that the DA of central employees will increase to around 4 percent.
What will happen to the 3 pending DA's?
Regarding the three pending DA installments, Mishra said that he's in touch with the central government officials regarding this and will soon find a solution to it. "The good thing is that the government is not against giving the outstanding installments of DA. We have proposed to the government that if they are not able to provide the remaining three installments of DA to the employees at once, then they can also give it in parts," he said.
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