There is good news for 50 lakh existing central government employees and 61 lakh pensioners. The wait for the announcement of dearness allowance to the central employees is long and the wait for them may end this month. According to media reports, the central government may announce a 4% increase in Dearness Allowance (DA) this month. This will lead to a tremendous increase in the salary of central employees. The Department of Labor has announced the All India Consumer Price Index (AICPI), raising the expectation among central employees that they may get an increased DA. The AICPI index determines the rate of dearness allowance.
Based on the AICPI index, it is being said that the government may increase dearness allowance by 4%, which will benefit central employees and pensioners. According to the 7th Pay Commission, if there is a 4% increase in dearness allowance for central employees, their travel allowance (TA) will also increase by 4%.
However, DA will not be given to central employees from July 1, 2020 to January 1, 2021. The central government banned dearness allowance in April due to the Korana virus epidemic. The central government had announced that central employees would not receive dearness allowance until June 2021.
Since when will the dearness allowance be increased
For this reason, DA and Dearness Relief (DR) are not yet paid to the employees. Let me tell you that at present the dearness allowance of central employees is 17%. After this increase in DA, dearness allowance will increase to 21% and travel allowance will also increase by 4%. This will result in a bumpy increase in salary of employees and pension of pensioners. However, this increased dearness allowance will be available only after June 2021.
Dearness allowance is declared twice
The central government revises the dearness allowance from time to time. The calculation of DA is based on the percentage of basic salary. Dearness allowance is given to central government employees to help them bear their expenses keeping inflation in mind. It is announced twice a year, the first installment from January to June and the second from July to December. It is combined with HRA.