The DA hike was earlier scheduled to be announced by April end or mid May but now has been moved to June.
Dearness Allowance (DA) hike for central govt employees has been postponed to June 2021.
The hike will be upto 4% of the basic salary.
Reason Behind DA Payment Delay
Siva Gopal Mishra, Secretary of National Council of JCM – Staff Side, explained that the delay is due to the resurgence of the pandemic’s second wave which has caused most developments to be postponed by a month.
The DA hike was earlier scheduled to be announced by April end or mid May but now has been moved to June.
Minister of State (MoS) for Finance, Anurag Singh Thakur, had previously said that the 3 installments of allowance payments will resume from July 1, 2021 along with revision of DA rates on the same date.
Official Date As Per Fin Minister
He said to the parliament that the 3 installments of allowance payments from January to June 2020, July to December 2020, and January to June 2021 will be “restored prospectively and will be subsumed in the cumulative revised rates effective from 01-07-2021.”
But there has been no word on that ever since.
Siva Gopal Mishra clarified that the 7th Pay Commission pay matrix of employees will remain unaffected since the Centre has already frozen their DA and DR of pensioners till June.
He also said that the rate of increase of DA will be around 4% given the average inflation for July to December 2020 which was 3.5%.
Status Of Pending DAs
Responding to queries about what will happen to the 3 pending DAs, Mishra said that he is in touch with the Department of Expenditure and Department of Personnel and Training (DoPT) to come up with a solution.
He added that the govt is not opposed to paying the outstanding installments.
He proposed to the Centre that if they cannot make the payout in lump sum, they can do so in parts.
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