Under the 7th Pay Commission, the Centre is expected to raise the dearness allowance by 3%. The DA arrears of Central govt employees who have been unpaid for 18 months have a light of hope. As a result of the 7th Pay Commission, the Centre is likely to increase DA by 3%.

The Union government may give central govt employees the long-awaited good news before the new year or in the first month of 2022. Under the 7th Pay Commission, the Centre is expected to increase the dearness allowance by 3%. The Narendra Modi government previously granted a 31 percent Dearness Allowance to 33 lakh central employees (DA). The government increased the rate of allowance from 17% to 28% in July of this year. Later that month, in October, the allowance rate was raised by 3%.

3% Revised DA Order 2021 PDF Download

There is now a spark of hope for central government employees’ DA arrears. According to the sources, the cabinet committee has demanded that, in addition to restoring DA, a one-time payment of DA arrears, which have been frozen for 18 months, be made. The topic is anticipated to be examined with the cabinet secretary this month.

Due to the dangerous COVID-19 pandemic, the finance ministry froze the DA rise in May 2020, and the delay was in effect until June 30, 2021.

Govt Employees and pensioners receive DA/DR to help with living expenses.

PM Modi will make the final decision on the DA arrears. If the Prime Minister provides his approval, the related benefits would be extended to central staff as well as nearly 65 lakh retirees. The Indian Pensioners’ Forum, Bharatiya Pratiraksha Mazdoor Sangh (BPMS), has also urged PM Modi to clear central employees’ and pensioners’ arrears of dearness allowance and dearness relief.

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The Labour bureau has released the Consumer Price Index numbers for industrial workers for the Month of May 2015 today.

As Expected the All-India CPI-IW for May, 2015 increased by 2 points and pegged at 258. So the expected DA from July 2015 can be arrived with the available 11 Months AICPIN points now. Because the left out one month AICPIN will not have much impact on Expected DA from July 2015 until it increase by 7 points.  The rate of Dearness Allowance which will be paid from July 2015 can however be arrived exactly with these eleven months AICPIN points by assuming the 12th Month ie June 2015 will be 258 plus or Minus 5 points.  Enter these AICPIN  points in the calculator provided in this website to find out the expected DA from July 2015.

Assuming the AICPIN for the Month of June as 260 points, the Average 12 Months AICPIN is 254.33.
By applying the above AICPIN  average in the prescribed formula, which results the 6% increase in the rate of DA from July 2015. So the Dearness Allowance to be paid for central Government employees will be 119% from July 2015.

Source: www.gservants.com

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