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7th Pay Commission: Centre likely to announce DA hike in June

According to the National Council of Joint Consultative Machinery (JCM) - Staff Side, the center may announce a DA hike in June 2021

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Due to the second wave of Covid-19 in India, the central government employees may have to wait a bit longer as the announcement for Dearness Allowance (DA) hike due since January 1, 2021 may get further delayed. According to the National Council of Joint Consultative Machinery (JCM) - Staff Side, the center may announce a DA hike in June 2021. The JCM office-bearer mentioned that the DA hike would be to the tune of at least 4 per cent of the basic salary of a central government employee.

"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 believe that the 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," said Shiva Gopal Mishra, Secretary - Staff Side at the National Council of JCM.

He further stated that it won't have much impact on the central government employees' 7th CPC pay matrix as the center has already frozen DA and DR benefits of central government servants and pensioners till June 2021. In March 2021, the Minister of State (MoS) at the Ministry of Finance announced in the Upper House of the parliament that DA and DR benefits will be restored from July 1, 2021. So, even if the DA hike due since January 1, 2021 is announced today, it will be restored from 1st July only.

Speaking on the percentage of DA hike, he 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 the 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 informed.

He further added that the JCM and other concerned central government officials are in constant touch and they are soon going to sit together and discuss about the payment of three DA installments.