The same day last year, Ministry of Finance issued order to freeze the DA at same level till 1st July 2021. Now all the Central Government Employees are wants that it should be restored from 1st July 2021
Exactly one year has passed so fast without any increase in DA and there is no much protest against this decision as Country is passing through a tough time that never faced before. They accepted this Financial Loss [ Calculate DA and DR Arrears Loss ] for the sake of country’s fight against the COVID-19 Pandemic.
Now all that they are asking is whether these 3 instalments of DA will be restored from 1st July 2021 or not ?
As per the order issued on 23rd April 2020 [ Read this Order Here], it is stated that,
As and when the decision to release the future instalment of Dearness Allowance and Dearness Relief due from 1st July 2021 is taken by the Government, the rates of Dearness Allowance and Dearness Relief as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid
So as per this Order, Govt should take a decision to release the DA instalment of July 2021. If decision is taken to release that July 2021 DA instalment , all the three DA instalments from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021.
The Rates of DA from 1st January 2020
Existing DA with effect from 1.7.2019 = 17%
Rate of DA increase from 1.1.2020 = 4%
Rate of DA increase from 1.7.2020 = 3%
Rate of DA increase from 1.1.2021 = 4%
with these three instalments total DA Confirmed = 28%
Expected DA Increase from 1.7.2021= 3 to 4% Expected [ Calculate Expected DA from July 2021]
So if decided to release the DA instalment from July 2021, the Total DA to be paid to Central Government Employees and Dearness relief to Pensioners will be 31% to 32%.