It has been a long wait for central government employees (CGEs). The CGEs have been asking for revised Dearness Allowance (DA) for a while now. The DA of central government employees and Dearness Relief (DR) of pensioners were put on hold last year in wake of Covid 19 pandemic. But the wait is almost over as these employees and pensioners may soon get the benefits of DA, DR in their September salary.

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Currently, they are getting DA at old rate of 17 per cent, however, come September and they will be getting not just three pending DAs but expectedly 3 percent DA for June 2021 as well. Though the government is yet to announce DA rate for June 2021, but it is very much likely to be announced this month itself. The increase in DA has been estimated in line with the AICPI (All India Consumer Price Index) data for January 2021 to May 2021. The data suggests that DA may be increased by 3 per cent for June 2021, said Shiv Gopal Mishra, secretary, National Council of JCM (staff side).

This means, that the government employees in all likelihood will get 31 per cent DA in September. Four per cent DA for January 2020, 3 per cent for June 2020 and again 4 per cent DA for January 2021. Plus, probable hike for May 2021 is 3 per cent, taking the collective percentage in DA for central government employees to 31 per cent in September 2021.  

Now, the question is how it will reflect in the salary of CGEs as per 7th Pay commission ay matrix.  Well, the DA will be calculated on basic salary of a central government employees' employee. Supposedly, if an employee gets a basic salary of Rs 25,000, this means the calculation will be 31% (previous 17 % + current expected hike of 14 %) of Rs 25,000. As in this case here, since the actual hike in DA is 14 %, the CGEs getting Rs 25,000 in basic salary will go up by Rs 3500 (14% of 25,000). Similarly, salary of other central government employees will be calculated.  

Once the DA is increased, DR will go up proportionally for central government pensioners. Besides, other allowances (Travel allowance, city allowance, provident fund and gratuity) will also increase as the hike in DA is directly proportional to other allowances.  

Reported by Shubham Shukla