Cabinet hikes DA of central government employees by 5 per cent effect from July 2019

Cabinet hikes DA of central government employees by 5 per cent effect from July 2019

7th Pay Commission Latest News Today 2019 - Cabinet Approves 5 percent DA Hike from July 2019

5% DA from July 2019 Declared

More than one crore of employees and pensioners are waiting for the announcement of hike in DA from July 2019.

Today the Centre has decided to increase 5 percent Dearness allowance for Central Government employees and Pensioners with effect from 1st July 2019. The second installment of 5 percent additional Dearness allowance is increased for Central Government employees and Pensioners with effect from July 2019. After enhancement of 5% the DA is increased from 12% to 17%.

Also check: Cabinet approves 5% additional DA/DR to Central Government employees due July, 2019 - PIB

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The hiked rate of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners will be applicable retrospectively from July this year

These are revised twice a year from January 1 and July 1.

DA Arrears

5% DA Arrears for three months from July to September 2019.

DA from January 2020

The 5% additional Dearness allowance for the period of 6 months from July to December 2019. After that the next episode of ‘DA from January 2020’ will start!

Check this 7th pay commission pay hike latest news

DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali

DA Announcement before Diwali – 5% Hike in DA for Central Government Employees before Diwali

7th Pay Commission Latest News Today 2019 – 5% Hike in DA for Central Government employees and pensioners before Diwali

DA Announcement before Diwali

More than one crore Central Government employees and pensioners are looking for DA announcement from the month of September. The Central Government has not taken any decision on DA yet. We hope that the announcement of 5% increase in DA additionally from July 2019 will be declared before the grand festival of Diwali.

Also read: 7th CPC DA Hike will announce today for central government employees and pensioners

 

17% of 7th CPC Matrix Pay

At present, all Central government employees are getting 12% Dearness allowance of their matrix pay and if Govt declare 5% hike in DA, the total DA will become 17%. For example, if an employee gets Rs. 49000 matrix basic pay, he will get enhanced DA will be Rs. 8330 per month (Rs. 5880 + Rs. 2450 = Rs. 8330).

First Time 5% DA

After implementation of 7th Pay Commission, this is the first time 5% increase in DA

Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

M/Y	Enhanced DA	DA %
Jul-16	2%	2%
Jan-17	2%	4%
Jul-17	1%	5%
Jan-18	2%	7%
Jul-18	2%	9%
Jan-19	3%	12%

Expected DA Hike will announce today for central government employees and pensioners

Expected DA Hike will announce today for central government employees and pensioners

Expected DA July 2019

As per 7th CPC recommendation, DA is expected to be 5% which is pending since July 2019. There is a chance to get announcement with in one or two days if so, employees would get arrears of three month or else it will be in next month probably. The much speculated 5% hike in DA may now come through as early possible.

As Festival season is so closer, but the government delaying the announcement of DA hike. we may expect at anytime as soon as possible and employees look forward the festival bonus from the government

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Also check: 5% DA increase from July 2019 confirmed for Central Government Employees. 12% becomes 17% due to high inflation

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Dearness Allowance(DA) is depending on the cost of living adjustment allowance paid to government employees and pensioners.

DA is important not only for the central government employees but for the state Government employees also. Normally it will be announced during September and released on October. Now Employees want to know the clarity about DA hike. The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners.

All Central Government employees and Pensioners including Defence and Railways expecting the announcement of additional Dearness allowance due from July 2019.

DA and DR from July 2019: 5% + 12% = 17%

In regular practice, DA announcement will be in the month of March and September. The 2nd installment of additional DA from July 2019 may be declared soon!

Cabinet approval on DA

All pre procedures are completed from the department side and finally Cabinet Cabinet will decide on the agenda item of hike in Dearness Allowance for Central Government employees and pensioners due from July 2019.

Usually, DA hike will be declared after Cabinet Committee approval in the first or second week of March and September. After approval of Cabinet Committee, Finance Ministry will issue formal orders for payment of Dearness allowance to all eligible employees with arrears for two months.
Hence, this is last week of September and Centre is likely to declare 5% DA hike today!

Read More for Expected DA for Central Government Employees

Calculation of Additional DA
According to the AICPIN (Consumer Price Index for Industrial Workers Base Year 2001=100) from January to July 2019 published by Labour Bureau, calculation of additional Dearness Allowance will be as follows…

A=Month/Year, B=CPI(IW) BY2001=100, C=12 Months Total, D=12 Months Average, E=App DA %

A	B	C	D	E
Jan-19	307	3557	296.42	13.39
Feb-19	307	3557	298.08	14.02
Mar-19	309	3599	299.92	14.73
Apr-19	312	3623	301.92	15.49
May-19	314	3648	304.00	16.29
Jun-19	316	3673	306.08	17.08

As per the recommendations of 7th pay commission, additional DA and DR from July 2019 may be enhanced by 5% from the existing rate of 12%.

All are waiting for the good news soon!