Central Government Employees DA Hike effect from 01.07.2021 DA Hike Latest News

11%[Increase DA] + 17%[Existing DA] =Total 28% DA

Central Government Employees DA Hike effect from 01.07.2021

Cabinet

Cabinet approves increase in Dearness Allowance and Dearness Relief

DA Hike Latest News

14 JUL 2021

The Cabinet Committee chaired by the Hon’ble Prime Minister Shri Narendra Modi today has approved an increase in the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension.

In view of the unprecedented situation which arose due to the COVID-19 pandemic, three additional instalments of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners, which were due from 01.01.2020, 01.07.2020 and 01.01.2021, had been frozen.

Now, the Government has decided to increase the Dearness Allowance to Central Government employees and Dearness Relief to pensioners with effect from 01.07.2021 to 28% representing an increase of 11% over the existing rate of 17% of the Basic Pay/Pension. The increase reflects the additional instalments arising on 01.01.2020, 01.07.2020 and 01.01.2021. The rate of Dearness Allowance/Dearness Relief for the period 01.01.2020 to 30.06.2021 shall remain at 17%.

PIB

Time period for the Central Government Dearness Allowance revision

Time period for the Central Government Dearness Allowance revision

Time Interval for revision of dearness allowance:

Endeavour shall be made so that the cost of living allowance and the cash value of the concession in respect of essential commodities at concession rate shall be computed once before 1st April and 1st October in every year to revise the dearness allowance payable to the employees on the minimum wages.

Also read: 5 Percent DA July 2019 Hike Order - Grant of Dearness Allowance to Central Government employees

Popular News: Central Government Employees DA from July 2015 will be 119%

Popular News: Central Government Employees DA from July 2015 will be 119%

Two Point increase in CPI (IW) provides scope for 6% likely increase in DA payable to Central Government Employees and Pensioners from July 2015

Rewind Central Government Employees DA from July 2015 will be 119% – All India Consumer Price Index (Industrial Workers) for May 2015 released by Labour Bureau – Two Point increase in AIPCI(IW)

DA from July 2015 – As estimated in our article on 30th May 2015, Dearness Allowance for Central Government Employees with effect from July 2015 will be increased by 6% thanks to two point increase in All India CPI (IW) for May 2015.

Except CPI for June-2015, all data for calculation of Dearness Allowance from July 2015 are available now.

Month	Actual AICPI-IW
Jul-2014	252
Aug-2014	253
Sep-2014	253
Oct-2014	253
Nov-2014	253
Dec- 2014	253
Jan-2015	254
Feb-2015	253
Mar-2015	254
Apr-2015	256
May-2015	258
Jun-2015	To be released

We have to take the assumed value for CPI-IW only for June 2015. It is found that even for increase of 6 points in June 2015 from the existing CPI of 258, DA from July 2015 will be 119%. Only when CPI is increased to 265 from the existing level of 258, DA from July 2015 will be increased to 120%.

DA from Jul 2015	[(252+253+253+253+253+253+254+253+254+256+258+265)-115.76]*100/115.76
=	120% (7% increase in DA from July 2015)

On the lower side, we found that only when Consumer Price Index fell down to 250 i.e when CPI (IW) is getting decreased by 8 Points, Central Government Employees DA from July 2015 will be fixed at 118%.

DA from Jul 2015	[(252+253+253+253+253+253+254+253+254+256+258+250)-115.76]*100/115.76
=	118 % (5% increase in DA from July 2015)

From the above, it is clear that chances for decrease of 8 Points in CPI in a single month  or increase of 7 points in same period are very remote. So, we can very well conclude that DA from July 2015 will be 119%.