The announcement for Dearness Allowance (DA) hike that has been pending for long since January 1, 2021 for central government servants (CGS) is likely to get further delayed. As per a Livemint report that cites the National Council of JCM - Staff Side, the government is likely to announce DA hike in June 2021. Further, the hike shall be at least 4 percent of the basic salary of a central government staff, said the JCM office bearer.
On the reason for the delay in announcement of hike in DA, Shiva Gopal Mishra, Secretary - Staff Side at the National Council of JCM told the publication"We are in constant touch with the Department of Expenditure officials at the Ministry of Finance and the Department of Personnel & Training (DoPT) officials. They are of the opinion that whole plan of the center has got disturbed after the second wave of Covid-19 in India and hence everything has been shifted by near one month. So, the DA hike announcement which was expected by April end or by May first fortnight may now get shifted to June."
Further he added that the delay won't create much of an impact on the 7th CPC pay matrix of central government servants. This is because the centre has already freezed DA and DR benefit of these employees and pensioners until June 2021. The DA and DR benefit shall be reinstated from July 1, 2021 as announced in March this year by the Minister of State (MoS) at Finance Ministry in Rajya Sabha. Thus even if the increment in DA is announced in the interim, it shall be reinstated from July 1st only.
In respect of the quantum of DA hike, Shiva Gopal Mishra of the National Council of JCM 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 center to pay DA installments of the central government employee in parts if they are unable to pay the three installments of DA to around 52 lakh employees in one go", he added.