In a good news for lakhs of Central government employees, the Dearness Allowance (DA) hike for July 2021 is likely to be approved soon by Prime Minister Narendra Modi led government at the Centre. Notably, the AICPI (All India Consumer Price Index) data for January 2021 to May 2021 has been released and it is expected that the Centre would take these data into account and increase the DA for July 2021 by 3 per cent.
It means that DA hike of 3 percent will be added to the Dearness Allowance which is expected to increase from September. Currently, the DA of Central government employees is 17 per cent and sources claimed that it will increase in September. The DA for July 2021 is also likely to be added to the September cumulative DA and central government employees will get money for four DA installments.
It may be recalled that 4 per cent DA of Central government employee was increased for January 2020, 3 per cent for June 2020 and again 4 per cent DA for January 2021. But the Central government employees are still getting DA at older rate of 17 per cent as the government froze the DA due to COVID-19 outbreak. It is now expected that the announcement for June 2021 DA will be made in July. As AICPI data suggested that the Centre may add 3 per cent more DA, the central government employees will get 31 per cent DA in September 2021.
In May 2021, AICPI data for May 2021 was released by the Labour Ministry and it showed that the index had registered a hike of 0.5 per cent, taking it to 120.6. As per secretary of National Council of JCM (staff side), Shiv Gopal Mishra, it is likely that DA may be increased by 3 per cent for June 2021. The AICPI data for June is yet not released but it is expected that it may record high jump which means that is highly unlikely that DA will increase by 4 per cent in June 2021. For 4 per cent increase in DA, the AICPI data should be 130 points.
Notably, the Central government employees will not only benefit from DA hike but other allowances will also increase as DA hike is directly proportional to other allowances. It is likely that travel allowance, provident fund and gratuity would also increase with the DA hike.