DA Hike announcement to be delayed to June, pushing implementation
It is expected that the 7th Central Pay Commission’s announcement of a hike in dearness allowance (DA) may get further delayed to the month of June 2021.
The pandemic has disrupted the functioning of various departments and the excepted DA hike announcement that was supposed to happen in April will now be further delayed to June, pushing implementation to July.
Shiva Gopal Mishra, Secretary at the National Council of JCM told media sources that the move will not have much impact on the central government employees' 7th CPC pay matrix as the centre has already frozen DA and DR benefits of central government servants and pensioners till June 2021.
He further explained that in March 2021, the Minister of State (MoS) at the Ministry of Finance announced in the Parliament that DA and DR benefits will be restored from July 1, 2021.
Speaking on the percentage of DA hike, he reportedly said,
"As per the DA hike calculation, average inflation for July to December 2020 comes around 3.5 per cent that means the minimum DA hike that a central government will get is 4 per cent of their basic salary. We have recommended the centre to pay DA instalments of the central government employee in parts if they are unable to pay the three instalments of DA to around 52 lakh employees in one go,"
