Before Budget 2021, the lottery for Central Government Employees has been started. An increase in their DA (DA) has been announced.
Before Budget 2021, the lottery for Central Government Employees has been started. An increase in their DA (DA) has been announced. The Labor Office has released the AICPI data from July 2020 to December 2020. This time 4% hike in DA of central employees is fixed. However, Dearness Allowance is currently freeze due to Coronavirus. At present, DA is 17% of central employees. However, this was increased to 21% in 2019. But due to Corona Mahamari, the central government has freeze the increase till June 2021.
Harishankar Tiwari, former president of AG Office Brotherhood and president of Citizens Brotherhood, said that this time too inflation inflation will be increased by 4%. Let us know that the central government revises it from time to time. Its calculation is based on the basic pay as a percentage. Right now employees and pensioners are getting separate DA. According to experts, DA is fully taxable. That is, the amount you get in the name of dearness allowance is taxable.
Difference between DA and HRA
Like DA, House Rent Allowance (HRA) is also an important component of an employee’s salary. The employer gives this to meet the needs of his employee’s rented house. HRA is available to employees of both the public sector and the private sector. The calculation of DA is based on the percentage of basic salary, which is then combined with HRA in Basic.
This is how DA calculates
DA links to the All India Consumer Price Index (AICPI). In its formula, the average of AICPI is taken.
DA% = (Average of AICPI (base year 2001 = 100) for the past 12 months -115.76) / 115.76) x100
DA will be 32%
7th Pay Commission: According to Harishankar Tiwari, DA will increase from 30 to 32% by June 2021. This will lead to a jump of about 15% in DA payments of central employees. The central government revises it every 6 months. Its calculation is based on the basic pay as a percentage. Right now employees and pensioners are getting separate DA.
Corona Mahmari mein DA
7th Pay Commission: Due to Corona mahamari, the government has freeze the increase in dearness allowance for 1 January 2020 to 1 July 2021. Also, the amount of Dearness relief, DR for pensioners will not increase till 1 July 2021. With this decision, the government will save a total of Rs 37000 crore in FY 2021-2022.
No Arrear of Dearness Allowance
7th Pay Commission: It is clear in the Central Government’s order that no arrears will be found from 1 January 2020 to 30 June 2021. In July 2021, the decision regarding DA and DR, which will be implemented one by one.
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