The Central government employees are likely to get a hike in Dearness Allowance (DA) for the January-June 2020 period from July 2021 onwards as per the recommendation of 7th Pay Commission.
As per Labour Ministry’s AICPI (All India Consumer Price Index), a rise in the inflation in the inflation during the January-June 2020 period by 2 per cent may result a hike in DA for the central government employees.
Due to that rise in inflation, the government employees may get a 3 per cent hike in their DA, reported Zee Business.
However, an official confirmation related to the same is yet to be made.
“DA hike is announced on the basis of AICPI hike. Since the AICPI number rose from 330 to 332 during January 2020 to June 2020. We can expect the DA hike to the tune of 3 per cent," said Harishankar Tiwari, Former Chairman at Pragyagraj-based AG Office Brotherhood.
The central government employees are presently getting 17 per cent DA. Meanwhile, the Centre recently freezed the DA till June 2021 due to the COVID-19 pandemic.
This decision of the Centre was misinterpreted by many with the Congress lashing out at the Narendra Modi government for freezing the DA.
However, the BJP later clarified that there was no cut in DA and dearness relief (DR). The additional hike over 17 per cent, currently paid, will be reinstated prospectively, effective January 2020.
“There is no cut in DA and DR. It’s a temporary HOLD on the additional HIKE, which will be reinstated. DA and DR at the current rate, the highest ever rate at 17% brought by Modi government, will continue to be paid,” the ruling-BJP said in a tweet.
There is no cut in DA & DR. The additional HIKE over 17% currently paid will be reinstated prospectively, effective Jan 2020.
Congress, with legacy of Compulsory Deposit Schemes that mandated 3-18% deposit of incomes for 3-5 years, should introspect before showing concern! pic.twitter.com/YwxkBmRzVq
— BJP (@BJP4India) April 25, 2020
It further said, “When the government decides to release the instalments of DA and DR from 1 July, 2021, the effective rates from January 2020, July 2020 and January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1 July, 2021.”