After the dearness allowance restoration has been announced for the central government servants (CGS), it was being supposed that travel allowance shall also rise from July 2021. In usual cases, TA has a direct connection with DA and the former rises on increase in the latter.
As per the 7th pay commission, TA hike shall not be applicable from july 2021 as the current DA of central government employees is only 17 percent. As per Gopal Mishra, Secretary National Council JCM, TA rises in sync with DA hike and it happens when DA is 24 percent or above.
Also, he said DA of central government employees be over 25% after restoration in July 2021 and therefore when DA doe July to December 2021 is announced only then the hike in TA will be made effective
So, the hike in DA or dearness allowance for central government employees shall be announced by Dusshera to Diwali, which means that DA will reflect in central government employees' 7th central pay commission Matrix by 2021 end.
Nonetheless, last month it was announced that DA of central government employees and pensioners shall be restored with effect from July 1, 2021. Minister of State (MoS) for Finance, Anurag Singh Thakur has said that the three instalments of DA begin from July 1 this year. The revised DA rates will become effective from 1st July 2021.
"As and when the decision to release the future instalments of Dearness Allowance due from 01.07.2021 is taken, the rates of DA as effective from 01.01.2020, 01.07.2020 and 01.01. 2021 will be restored prospectively and will be subsumed in the cumulative revised rates effective from 01.07.2021," MoS Finance Thakur said in Rajya Sabha last month.
In the current regime, central government employees get 17 percent DA which may increase to 28% from July 1, 2020 and an expected 4 percent DA hike effective from July 1, 2020, and an expected 4% DA hike from January 1, 2021. This will result in a significant jump in the take-home pay of CGS.