Reported by Shubham Shukla

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In good news for Central Government Employees (CGEs), the Dearness Allowance (DA) increase for July 2021 is likely to get green signal soon. It is said the government will make announcement in this regard soon. Apparently, the AICPI (All India Consumer Price Index) data for January 2021 to May 2021 has been released. Based on these data, it is expected that DA for July 2021 may increase by 3 per cent.   

It implies that 3 per cent more DA will be added to the Dearness Allowance set to increase from September. Currently, central government employees are getting DA at 17 per cent, which is all set to increase in September. Now, on top of that DA for July 2021 will also be added to the September cumulative DA and central government employees will get money for four DA installments.  

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Eerier, 4 per cent DA was increased for January 2020, 3 per cent for June 2020 and again 4 per cent DA for January 2021. However, Central government were paid DA at older rate of 17 per cent as the government decided to freeze their Dearness Allowance in the view of Covid 19 pandemic. Now, for June 2021 DA, announcement will be made in July. As AICPI data suggested that 3 per cent more DA would be added, central government employees will get 31 per cent DA in Septemeber 2021.   

DA calcualtion for September

Earlier in May 2021, the Labour Ministry had released AICPI data for May 2021. The index saw increment of 0.5 per cent, taking it to 120.6.  As per secretary of National Council of JCM (staff side), Shiv Gopal Mishra, the data suggests that DA may be increased by 3 per cent for June 2021. The AICPI data for June is yet to come and it is anticipated that it may not see huge jump. In that case, it 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.  So, along with June 2021 Da, central government employees would get onlt 31 er cent DA in September.  

Central government employees will not only benefit from DA hike in September, but other allowances will also increase as the hike in DA is directly proportional to other allowances. Travel allowance, city allowance, provident fund and gratuity are also likely to increase with the DA. 

Fake Dearness Allowance OM

Earlier, the Ministry of Finance had clarified that no order relating to the payment of increments in dearness allowance for central government employees and dearness relief for pensioners has been issued. The Ministry was responding after a fake OM started claiming otherwise. "A document is doing the rounds on social media claiming resumption of DA to Central Government employees & Dearness Relief to Central Government pensioners from July 2021. This OM (Office memorandum) is #Fake. No such OM has been issued by GOI," said a tweet posted by the Ministry