DA for Central Govt Employees latest Updates
The news in the air for central Govt employees and pensioners is DA. There is lot of buzz going around as to what is the latest decision on DA. So in this article, we are giving you latest updates covering full story on DA.
Presently Central Govt employees are getting DA at the rate of 17%. DA is 17% with effect from 01 Jul 2019. It is noteworthy that Central Govt employees get DA twice a year i.e. on 01 Jan and 01 Jul every year. The Govt decided to increase DA by 4% from 01 Jan 2020 but the decision could not be executed as lock-down came in force on 23 Mar 2020. Consequently, DA came to on hold since then. DA was supposed to increase on 01 Jan 2020, 01 Jul 2020 and 01 Jan 2021. However, DA attracted no intention from Govt and hence no increase in DA.
If Govt had increased DA on an average 4% then by March 2021, it would have reached 29%. But due to Corona pandemic, the DA is still 17%. Central Govt employees and pensioners are dubious as they will get DA effecting from 1 Jan 2020, arrears of DA, Flat DA ????
The case was invoked in parliament where then Minister of State for Finance, Anurag Thakur came with assurance that DA will be increased w.e.f 01 Jul 2021.
In fresh developments, Union Minister Anurag Thakur said on 14 Jul 2021 that the DA for central government employees and pensioners has been increased from 17% to 28%. All three installment together increased DA by 11%. No arrears for the period from 01 Jan 2020 to 30 Jun 2021 shall be paid.
The increase in DA from 01 Jul 2021 will only be effective from that day, which implies that the employees would not get any arrears on revision of DA for previous period.
Well the news has brought relief and cheers for the central govt employees but that is not all they will get. The overall DA from 01 Jul 2021 is expected to be 32% as another hike in the DA is expected with effect from 01 Jul 2021. The present announcement is for the period of 01 Jan 2020 to 30 Jun 2021. The hike in DA from 01 Jul 2021 is still awaited and employees has to wait for more two to three months as the decision will be taken based on CPI (consumer price index). View inflammation rate on sky high, the rate of DA is expected to hike by another 4%.
The decision from Govt will benefit about 50 Lakh central government employees and more than 65 Lakh pensioners. Thakur said that hike is expected to cost the government approx. ₹34,400 crores.
Central govt employees are happy with the news that finally freezing of DA is ended but there is also a disappointment that arrears have not been allocated.