In a good news for lakhs of Central government employees and pensioners, they are expected to receive a Dearness Allowance (DA) hike of 3% in July. According to the data released by All India Consumer Price Index (AICPI) from January to May, it is likely that the DA of Central government employees and pensioners may increase by 3% in July.
Under the 7th Pay Commission, Central employees currently get 17% DA and when the DA hike of the last three installments will be restored then it will jump to 28%.
It may be recalled that DA was increased by 4 percent in January 2020, followed by 3 percent increase in the second half i.e. July 2020 and it has increased by 4% in January 2021. Now if it will increase by 3 percent in July 2021, then the central government employees will get DA hike of 31 percent (17+4+3+4+3) from September.
It is to be noted that Labour Ministry has given the figures of All India Consumer Price Index for May 2021. In this, there has been an increase of 0.5 points in the index for May 2021, due to which it has reached 120.6. The Labour Ministry is yet to release the data for June but it is highly unlikely that there will be any major increment in June data. For a DA hike of 4%, this data should touch 130 in June, but it is impossible for AICPI to jump 10 points in a month and this is the reason why the increase in DA in July is unlikely to be more than 3%.
In a report published in Zee News, the DA for January 2021 and July 2021 will be announced in September. Therefore, the Central government employees and pensioners will have to wait for two months now. The report added that DA arrears of Class 1 employees will be between Rs 11,880 to Rs 37,554.
