DA Hike will reach 25%?

24% DEARNESS ALLOWANCE FROM JULY 2020

AICPIN for the month of May is released today by labour bureau. According to the press release AICPIN increased by 1 point and stood at 330. In our Geod page, we published an article regarding DA hike, which may increase by 3 points and stand at 331 so in such case DA hike also confirm to 25%.

But unfortunately AICPIN for the month of may increased by only one point from the existing level, so it is confirmed that DA hike raised to only 24%.

Freezing of DA:

The Word “Dearness Allowance” brings happiness to all those Central government and state government employees. The union cabinet had hiked the dearness allowance by 4 per cent from the existing 17 per cent to 21 per cent. It was then kept on hold due to the COVID-19 pandemic in the country. The Central Government announced the hike in DA and DR will be frozen along with the future installments for central government employees and pensioners till July 2021 due to COVID-19.[FINMIN Order No.1/1/2020-E-II (B)]

DA hike 25% from July 2020

As per the Government decision, of Dearness Allowance and Dearness Relief due from 1st July 2021 will be subsumed in the cumulative revised rate. In this regard, all central government employees expect that DA hike may increase up to 25% in July 2020. Due to rising the cost of living, this DA hike is very important. so it is expected that AICPIN for the month of May and June 2020 may increase by 3 points and stand at 331 and 334 respectively, in such case DA hike confirm to 25%. [Also check Expected DA July 2020]

The relation between DA hike and HRA:

When DA increased to 25% the HRA also expected to be raised. If AICPIN for the month of MAY and JUNE increased by 3 points continuously, DA may also increase above 25%. In this regard, Central government employees believe that HRA will be revised upwards to 27%, 18% and 9% for X, Y, Z category of cities. [7th CPC HRA – No.2/5/2017-E.II(B)]

DA hike has temporarily stopped by the government due to COVID-19 pandemic and in this situation, employees believe that HRA will also increase definitely.