Good News for Central govt employees: 3% DA hike likely in July, says report

New Delhi: A good news for lakhs of Central government employees and pensioners is likely to come soon. According to the data released by All India Consumer Price Index (AICPI) from January to May, it is expected that a 3 percent hike in DA can be given to the Central government employees and pensioners in July, a DNA report said. There is still no official confirmation regarding the same.

According to the report, the AICPI has reached 120.6 following an increase of 0.5 points in the index for May 2021. The Ministry of Labour has not released the data for June. The report noted that it is highly unlikely that there will be any major increment in June data. If the AICPI touches 130 in June, a hike of 4 percent in DA may be announced. However, it is impossible for AICPI to jump 10 points in a month, hence, hike in DA in July is unlikely to be more than 3 percent.

Under the 7th Pay Commission, central employees currently get a 17% dearness allowance. When the DA hike of the last three installments will be restored, then it will become directly 28%.

Last year in January 2020, DA was increased by 4% followed by 3% increase in the second half i.e. July 2020 then it was increased by 4% in January 2021. Now if it will increase by 3% even in July 2021, then the central employees will get 31% (17+4+3+4+3) from September.

Notably, The central government had stalled the DA hike in the wake of COVID-19 pandemic in 2020 and has neither released three installments of DA, due on January 1, 2020, July 1, 2020 and January 1, 2021. It is expected that benefits will be applicable from July 1,2021, and arrears for the month of July and August will be given to the employees and pension holders.