New Delhi, July 8: There could be a hike of 3 percent in dearness allowance (DA) for the central government employees, who get salary and allowances as per the recommendations of the 7th Pay Commission. According to the data released by All India Consumer Price Index (AICPI) from January to May, a 3 percent hike in DA is likely this month, a DNA report said. There is no official confirmation regarding the same. 7th Pay Commission Latest News Update: Announcement on DA Hike for Central Govt Employees May Get Delayed Due to COVID-19, Says Report.
The DA is hiked twice every year - in January and July. 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 be more than 3 percent. 7th Pay Commission Latest News Update: Wait Gets Longer, Pending DA and DR Payment Likely in September.
At present, central government employees get DA of 17 percent under the 7th Pay Commission. This level of DA became effective from July 2019. Last year, the government had approved a 4 percent increase in DA taking it to 21 percent. This was to be effective from January 1, 2020. There was an increase of 3 per cent in June 2020 and in January 2021, the dearness allowance was hiked once again by 4 percent. It means employees are eligible to get DA of 28 percent.
Notably, the government has neither released three installments of DA, due on January 1, 2020, July 1, 2020 and January 1, 2021, stopped in view of the COVID-19 pandemic, nor announced hike due from July this year. Central government employees can expect a fat increase in the allowance when the pending installments are released and a hike is announced for July-December period. Some reports say both things may happen in September this year.
(The above story first appeared on LatestLY on Jul 08, 2021 12:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).