Doubts over Announcement of 3 Percent DA hike from July 2020

Announcement of 3 Percent DA hike from July 2020

Central Government Employees raise doubts whether the Government will make Announcement for 3 Percent DA hike from July 2020. The Average of 12 Months AICPIN confirms 3% DA Hike from 1st July 2020. But the question is whether the central government will follow the usual practice to announce the 3% DA hike during this period of freezing of DA.

Cabinet Approval for DA hike from July 2020

Usually the cabinet approval for DA hike for July will be given in the first week of September. But there is no signs of getting cabinet approval for the proposal of DA hike from July 2020

What is the current rate of DA ?

As on date, the DA at the rate of 17% is being paid with effect from 1st July 2019. The DA hike from July 2019 was 5%. This is the highest DA increase in 7th CPC regime so far. Hence the rate of DA enhanced from 12% to 17% with effect from 1st July 2019.

What is the rate of DA from 1st January 2020 ?

As per the DA calculation, the rate of DA should have been increased by 4% from 17% to 21% with effect from 1st January 2020. The Central Government in its Cabinet meeting held on 13.3.2020 also accorded its approval for this DA hike proposal. When we were waiting for the DA order, the central Government issued order to freeze the DA at the current rate level from 1st January 2020 to 1st July 2021. So the dearness Allowance has not been increased to 21% and only 17% is being paid as on today.

How much DA to be paid after the increase of DA from July 2020 ?

As per the AICPIN average, the DA hike from July 2020 is 3%. With this hike, total DA is supposed to be increased to 24% with effect from 1st July 2020. But due to the order issued by Central Government to freeze DA at the current rate level, only 17% DA is being paid with effect from 1.7.2019 and the same will continue till 1st July 2021.

The rate of DA from 1st July 2019 = 17%
The rate of DA from 1st January 2020 = 17% + 4% = 21%
The rate of DA from 1st July 2020 = 17%+4%+3%= 24%

But Central Government employees are paid only 17% since the order to freezing of DA in force.

Expected Dearness Allowance from January 2021

Though the DA Hike for two instalments are not included in the existing rate, it is assured that these DA hikes will be added from 1st July 2021. Hence, the DA from January 2021 will also be calculated with same curiosity .

Calculate Here : Expected DA from January 2021