The Cumulative Revised Rate of DA from 1st July 2021 will be 31% if Govt decides to release the DA instalment due of July 2021
The central Government Employees have waited patiently for the past 18 months without any hike in DA from 1st January 2020. But they are expecting that Central Government will restore DA hike from 1st July 2021. They believe that 3 instalments from 1st January 2020 will be subsumed in the cumulative revised rate of DA effective from 1st July 2021.
The first and second wave of COVID Pandemic had caused more damages and it affected several businesses beyond repair. While the intensity of the impact differs from sector to sector, there are few sectors that have been hit the most and might continue to suffer until life turns back to normal.
The reason for freezing of DA still exists, but it is expected that the government will not postpone the restoration of DA hike from July 2021 for the same reason again.
All central and State Government Employees are denied a hike in salary through Dearness Allowance for the past year and a half . They accepted this with heavy heart for the sake of our country and decided to stand with the country during this tough time.
During this second wave, the central government has not imposed any nation wide lock down and conducted State elections successfully during this pandemic. So there is no any justifiable reason with Central Government to extend the freezing of DA beyond 1st July 2021.
Central Government to release Cumulative DA from July 2021
Hence we are told that Central Government will take a decision soon to release the DA instalment due of 1st July 2021. So as assured by the Government, all the three DA instalments will be subsumed in the cumulative revised rate of DA effective from 1st July 2021.
The existing rate of DA is 17% and total percentage of DA hike for three instalments is 4%+3%+4% = 11%. So total DA due with effect from 1st January 2021 is 28%.
The expected DA hike from July 2021 will be known exactly after the release of AICPIN for June 2021. But it is expected that rate of DA from July 2021 may increase by 3%.
So cumulative revised rate of DA from 1st July 2021 will be 31%. Check the DA Calculator