Expected DA from July 2020 and July 2020 DA Calculation
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 when 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%
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
The AICPIN Points from January 2020 to June 2020 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 and subsequently Allowances like HRA also will be increased to next level. [See the HRA Rate Increase ]
Latest News about DA from July 2020
Few days after the Central Government announced freezing of DA from 1st January 2020 to 1st July 2021, the expectation over latest news about DA from July 2020 increases.
Initially Govt employees were dismayed by this announcement. But later they realised that though the increase in the rate of DA as per the calculation for 1st January 2020, 1st July 2020 and 1st January 2021 would not be paid till June 2020, but the percentage of hike of these three instalments will be added with DA hike from 1.7. 2021.
So now everybody interested to know the latest news about DA from July 2020 after the AICPIN for the month of March 2020 decreased 2 points.
These 2 points decrease in consecutive months may certainly have some downward impacts in calculation of DA , but if the AICPIN points for remaining months sustains without any further decrease, we will get 4% hike in DA from July 2020
Here you can Calculate : DA Arrears Loss due to Freezing of DA for 18 Months