No Revision in DA for 18 Months – 17% Fixed DA and DR for 18 months from January 2020 to June 2021 to Central Government Employees and Pensioners
The Government of India has terminated the additional Dearness allowance (DA) and Dearness Relief (DR) for the period of 18 months. As per the office memorandum issued by the Department of Expenditure, the terminated additional DA and DR of three installments will restore with cumulative rates in July 2021. So the next DA and DR hike in July 2021 only.
No DA Arrears for 18 Months
The Finmin Order clearly said no DA and DR arrears for the period of 3 additional installments from 1st Jan 2020 to 30th June 2021 shall be paid.
READ ALSO: Freezing of Dearness Allowance and Dearness Relief – Finmin Orders 2020
3 Additional DA will break upto July 2021 due to Coronavirus Covid-19 Pandemic
The Finance Ministry order mentioned in para 2, when the Government declaring the future installment of DA and DR due from 1st July 2021, the rates of the suspended period will be restored with a cumulative basis. The below table is describing the segments of DA has suspended.
July to December 2021: 17% + 3 Additional DA + DA July 2021
January to June 2021: No DA and DR
July to December 2020: No DA and DR
January to June 2020: No DA and DR
July to December 2019: 17%
January to June 2019: 12%
July to December 2018: 9%
January to June 2018: 7%
July to December 2017: 5%
January to June 2017: 4%
July to December 2016: 2%
January to June 2016: 0
What is DA and DR?
Dearness Allowance (DA) and Dearness Relief (DR) both are the same. Dearness allowance and Dearness relief are being granted to existing employees and retired employees respectively. Dearness allowance is calculated on the basis of current basic pay of Government employees and the dearness relief is calculated on the basis of basic pension of Government pensioners.
Additional DA Freeze (Temporarily Suspended) for Central Govt employees for 18 months between January 2020 and June 2021.
Expected DA from July 2020 and Expected DA from January 2021 – Suspended DA Calculation
The Cabinet Committee already approved to increase 4% additional DA from January 2020 on the basis of Consumer Price Index (CPI). The next installment from July 2020 is expected to increase by 4% additionally. And another installment will also be expected to hike by 4% with effect from 1st January 2021.
The below-expected DA list:
- 1st January 2020 = Additional DA 4% (17% + 4% = 21%)
- 1st July 2020 = Additional DA 4% (Expected) (21% + 4% = 25%)
- 1st January 2021 = Additional DA 4% (Expected) (25% + 4% = 29%)
READ ALSO: 5th, 6th, 7th Pay DA Chart for Central Government Employees and Pensioners
