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D.A. may hikes by 30% or 31% from July, 2021 to Central Government Employee

Central government employees and pensioner's Dearness Allowance may hikes to 30% or 31% from July, 2021. It seems now that a decision on reinstating the additional three or four per cent DA will be taken closer to July 2021. The DA hike was put on hold in April 2020 in the wake of the economic crisis triggered by the deadly corona-virus pandemic. The Center had decided to put the DA hike on hold till July 2021.  While there are chances that it could be reinstated earlier, a formal confirmation from the government is awaited and therefore, Many workers’ associations have urged the government to restore the 4% DA hike for eligible employees and pensioners in view of the rising cost of living and inflation, however, last year, the central government had approved a 4% DA is from 17% to 21% hike in line with the formula, based on recommendations from the 7th Central Pay Commission.


The Expected Dearness Allowance from July 2021 will calculate the increase for this installment to be paid from 1.7.2021. As freezing of DA ends on 30th June 2021, it is expected that the three additional DA instalments will be restored with DA hike from 1st July 2021. So there will be a big leap in the increase of Dearness Allowance from July 2021.

The estimated hike of previous DA installments are as follows:

S.No

DA instalment

Total DA 17% +

1

DA Hike from 1st January 2020

21%

2

DA Hike from 1st July 2020

21%+ 3% (24%)

3

DA Hike from 1st January 2021

24% + 4%

-28%

4

DA hike From 1st July 2021

28%+ 3 or 4%*


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