The government has decided that Dearness Allowance (DA) of central employees and pensioners will not increase this year. But, inflation is expected to increase in July next year. In July next year it may increase by four per cent. However, no official statement has been made on this.
According to media reports, if the dearness allowance is increased at the rate of four per cent, it will directly benefit about 5 million central employees and 61 lakh pensioners.
Currently, the government has frozen the increase in allowances for June 2021 in the wake of the corona virus epidemic. Employees are being paid 17 per cent DA at the previous rate. It also means that it may take some time to increase the salary of Central Government employees.
In March, the government increased the DA of central government employees by four per cent. However, in April the government decided to implement it from June 2021 citing the epidemic.
Earlier, there were reports that the government may increase the Dearness Allowance (DA) before Diwali and make the base year 2016. This would have directly increased the salaries of central employees, as their dearness allowance depended on the calculation of CPI-IW.