Dearness Allowance is the only allowance that gives a hike in monthly salary once in six months. But the Expected DA from July 2020 will give Central Govt employees one more hike in certain Allowances if it reaches 25% level.
In sixth CPC regime, the annual increment was granted on 1st July of every year to all central government employees uniformly.
So all the central government employees would be happy when July month comes. Because July month brings a double hike in salary to Central govt Employees in sixth CPC era. It was considered as bonanza as July DA hike and Annual Increment are the two components which increase the salary considerably in the month of July.
So this July 2020 will be expected with same feeling as higher number of CG staffs are come under 1st July annual Increment category.
As we said earlier that the expected DA from July is special in many ways. Because it doesn’t only come with annual increment but also it will increase some allowances to some extent when it reaches 25% with 4% Hike. See the Allowances which are increased when DA reaches 25%
DA from January 2020 is confirmed
With December 2019 AICPIN increase, the Expectation for DA from January 2020 came to an end. As 2 Points increase in December AICPIN couldn’t change the earlier prediction, 4% hike is confirmed for January DA. So the dearness allowance will be enhanced from 17% to 21 from 1st January 2020.[ See DA from Jan 2020]
Calculation for Expected DA from July 2020
It requires 12 Months Consumer price Index numbers from July 2019 to calculate the expected DA from July 2020. Now we have six months AICPIN points from July 2019 to December 2019
From January 2020 to June 2020 AICPIN Points will determine the percentage of increase in DA to be paid from July 2020.
It is expected that the rate of DA may increase up to 25% level from 1st July 2020 [ Check the DA calculator]and subsequently Allowances like HRA also will be increased to next level. [See the HRA Rate Increase ]