In what comes as good news for lakhs of Central government employees, from July 1 onwards, the dearness allowance will be increased to 28 per cent from 17 per cent leading to an impressive hike in their salaries. This will benefit over 50 lakh permanent central government employees and 65 lakh pensioners across the country.
The government is also expected to pay the three pending DA instalments that were delayed amid the Coronavirus pandemic. The three installments of dearness allowance for central government employees and DR for pensioners, due on January 1, 2020, July 1, 2020 and January 1, 2021, were frozen in view of the COVID-19 pandemic.
How much salary will increase?
According to the new rules, the share of basic salary in your CTC should be 50 percent or more. If the basic salary is less than 50 percent in your salary details, then it is going to change soon. Your CTC may also increase along with your basic salary when the new rules are implemented. If a central government employee's basic salary is Rs 18,000 per month, in that case, the central government employee's monthly salary will be Rs 46,260 with an addition of various allowances.
Currently, DA is paid at the rate of 17%. However, the DA will increase to 28% because all the hikes that were introduced earlier will be included in the upcoming month’s salary. All the central government employees can now expect a major hike in the July month’s salary.
Previously, the dearness allowance of central employees was increased by 4 per cent in January 2020, 3 per cent in the second half i.e. in June 2020, and by 4 per cent in January 2021. If you include all the hikes then the DA will roughly stand at 17% of the basic salary of the government employees.
Harishankar Tiwari, former president of AG Office Brotherhood and president of Citizens Brotherhood, told Zee Business that by June 2021, DA is expected to rise by 3-4 per cent. With this hike, dearness allowance will increase to 32% after June 2021.
