New Delhi: Central government employees can finally breathe a sigh of relief as the increase in their dearness allowance (DA) is going to take place on July 1, 2021.
The dearness allowance will get increased by 28% from 17%, leading to an impressive hike in the salaries of over 50 lakh permanent central government employees and 65 lakh pensioners across India.
Moreover, the government is expected to pay the three pending DA instalments that were most probably delayed due to the economic constrain faced by the Indian government amid the Covid-19 pandemic.
Currently, DA is paid at the rate of 17%. However, the DA will increase to 28% because all the hikes that were introduced earlier will be included in the upcoming month’s salary. All the central government employees can now expect a major hike in the July month’s salary.
Previously, the dearness allowance of central employees was increased by 4 per cent in January 2020, 3 per cent in the second half i.e. in June 2020, and by 4 per cent in January 2021. If you include all the hikes then the DA will roughly stand at 17% of the basic salary of the government employees.
How much salary will increase?
Currently, the minimum salary according to the pay matrix of central employees is Rs 18,000. Overall, a 15 per cent dearness allowance is expected to be added to the salary, which will roughly translate to an increase of Rs 2700 per month. On annual basis, the total dearness allowance will increase by Rs 32,400.
Similarly, you can calculate your DA by using your pay scale. Moreover, the government is yet to announce the dearness allowance of June 2021, which will further increase the DA.
Harishankar Tiwari, former president of AG Office Brotherhood and president of Citizens Brotherhood, told Zee Business that by June 2021, DA is expected to rise by 3-4 per cent. With this hike, dearness allowance will increase to 32% after June 2021.