7th Pay Commission Allowance: This much DA hike expected for central government employees now

7th Pay Commission Allowance: Central Government employees have a good news in regard to the Dearness Allowance (DA) hike they are expecting for January to June 2020 period. As per the AICPI (All India Consumer Price Index) of the  Labour Ministry, inflation has gone up by around 2 points from January to June 2020. So, on the basis of this Ministry of Labour data, experts are of the opinion that in such a case central government employees may well expect 3 per cent DA hike announcement. Though, its actual benefit will get added into their monthly salary from July 2021.

Speaking on how much the DA hike can be expected on the basis of this Ministry of Labour data, Harishankar Tiwari, Former Chairman at Pragyagraj-based AG Office Brotherhood said, "DA hike is announced on the basis of AICPI hike. Since, the AICPI number rose from 330 to 332 during January 2020 to June 2020. We can expect the DA hike to the tune of 3 per cent."

For information of the readers, central government employees are currently getting 17 per cent Dearness Allowance but due to the Coronavirus pandemic, their DA hike has been frozen till June 2021. In this period, the central government will announce the DA but it will get added into the monthly salary of a central government employees from July 2021 onward.

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See full calculation below:

CPI(IW)BY2001=100 DA% Monthly Increase
Dec 2019 330 21.43
Jan 2020 330 22.16
Jun 2020 332 24.94

The Centre has frozen DA hike and dearness relief for pensioners till June 2021 to make funds available to fight the Coronavirus. By doing this the center will be able to generate Rs 37000 crore in FY 2020-21.

Speaking on freezing of DA and DR, Harishankar Tiwari said that earlier too the DA and DR have been frozen during challenging times, but later on these were restored with increased hike.