Bonanza in store for central government employees

There’s good news for central government employees. According to reports, from June 2021, they may get a salary hike soon.

They are likely to get a hefty amount as they will get the benefit of increased DA of two years. In January 2020, DA of central employees increased by 4%. This was followed by a 3% increase in the second half of last year. It increased by 4% in January 2021.

According to sources, DA may increase by 3 to 4% even in June 2021. At present, DA is being paid at 17%.

Let us see how DA is calculated:

It is linked to the All India Consumer Price Index (AICPI). In its formula, the average of AICPI is taken.

DA% = ((Average of AICPI (base year 2001 = 100) for the past 12 months -115.76) / 115.76) x100

Level-1 Basic Pay = Rs 18000
15% increase in DA = 2700 rupees per month (4% estimated in June)
= 32400 per year on the basis of DA increased throughout the year
Plus 17% DA pay

Dearness allowance may be 32%

If DA increases to 32% by June 2021, there will be a jump of about 15% in DA payments of central employees. This will bring a very thick salary in their hands. Let me tell you, the central government revises dearness allowance every 6 months. Its calculation is in percentage by considering Basic Pay as base.

Due to the economic impact of the coronavirus pandemic, government was forced to freeze hike in dearness allowance.