7th Pay Commission: Here's how much DA hike central govt employees, pensioners should expect in July?

The central government employees and pensioners, who are eagerly waiting for the three pending dearness allowance installments, may receive a 3 per cent DA hike in July.

The DA of the central government employees and pensioners will increase by 3 per cent in July, the data released by the All India Consumer Price Index (AICPI) from January to May 2021 shows, a DNA report said.

Currently, the central government employees and pensioners are receiving 17 per cent DA under the 7th Pay Commission.

However, this number will jump to 28 per cent when the three pending DA installments will be restored.

Under the 7th Pay Commission, DA was hiked by 4 per cent in January 2020. This was then further hiked by 3 per cent in July 2020. The DA was then hiked by 4 per cent in January 2021.

After the addition of these hikes and the amount already allotted under DA, the Central government employees and pensioners are expected to receive 28 per cent DA. Now, with further addition of the expected 3 per cent hike in July 2021, the DA will increase to 31 per cent from September.

The Central government employees and pensioners should note that the labour ministry has given the figures of the All India Consumer Price Index (AICPI) for May 2021.

The index point had increased 0.5 points in May and it now stands at 120.6. The AICPI is yet to release the data for June. However, a significant increase in the index point during June is not expected.

For a 4 per cent hike in DA, the index point would have to reach 130-mark by June. Since this is not expected to happen, the DA hike in June would not be more than 3 per cent.

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