DA hike for Central Govt. Employees, CDA based CPSE employees from 1st July 2021 and DR hike for Pensioners

AICPIN-IW for March 2021 has been released by Labour ministry on 30.04.2021. So, the DA / DR calculation for Central Government Employees and central autonomous bodies of 7th cpc, 6th cpc and 5th cpc have been updated till March 2021, which is shown below in the table. DA hike from 1st July 2021 for Central Govt. Employees and CDA pattern employees of CPSEs will be known to us after releasing of AICPIN-IW data of April, May and June.

Same DA hike will be applicable for CDA pattern employees of CPSEs of 7th cpc, 6th cpc and 5th cpc, governed by HPPC recommendations. But their official order for DA hike will be issued by the Department of Public Enterprises (DPE) under Ministry of Heavy Industries & Public Enterprises.

Click Here for DA / DR Freezing order for central Govt. employees and pensioners till 30.06.21.

Major Contents in the Post: (Jump to the Section)

  1. Expected salary, DA and HRA hike from 1st July 2021 for 7th CPC central govt. employees.
  2. Expected salary, DA and HRA hike from 1st July 2021 for 6th CPC central govt. employees.
  3. Calculation of DA / DR hike from 1st Jan 2021 (Jan’21 to Jun’21) of 7th CPC Central Govt. employees and CDA pattern employees of CPSEs
  4. Calculation of DA / DR hike from 1st Jan 2021 (Jan’21 to Jun’21) of 6th CPC Central Govt. employees, central autonomous bodies and CDA pattern employees of CPSEs.
  5. DA / DR Govt. Freezing order for central govt. employees and pensioners till June 2021
  6. DA/DR hike for 7th CPCGovt. DoE circular order since 2017
  7. DA/DR hike for 6th CPCGovt. DoE circular order since 2017
  8. DA/DR hike for 5th CPC Govt. DPE circular order since 2017
  9. DR hike for pensioners of 7th CPC – Govt. DPPW order since 2017

The Dearness allowances and Dearness relief applicable for central Government employees will not be hiked by Govt. of India at present as it is freezed till 30th June 2021. But, till then we are calculating the quantum of DA / DR increase on percentage basis in this post. This same increment of DA / DR will be added with effect from 1st July 2021.

Salary hike from 1st July for 7th CPC Central Govt. employees and CDA pattern employees of CPSEs:

Salary hike from 1st July for 6th CPC Central Govt. employees and CDA pattern employees of CPSEs:

DA for Central Govt. Employees of 6th CPC will increase by 7 %, from 182 % to 189 % from 01.01.2021. effectively the total salary due to DA hike from 1st July 2021 may increase by about 28 to 30 % in relative to 1st July 2019 (the last DA increment declared).

DA hike calculation up to March 2021, for Central Govt. Employees and CDA pattern employees of CPSEs of 7th cpc:

Calculated DA hike for Central Govt. employees for 7th CPC up to Mar 2021
Calculated DA hike for Central Govt. employees for 7th CPC up to Mar 2021

DA hike calculation up to Mar 2021, for central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs of 6th cpc:

Calculated DA hike for Central Govt. employees for 6th CPC up to Mar 2021
Calculated DA hike for Central Govt. employees for 6th CPC up to Mar 2021

Dearness allowance (DA) hike for 7th CPC central Govt. Employees and CDA pattern employees of CPSEs:

The DA has been hiked or increased to 17% from 12% w.e.f. 1st July 2019 for central government employees and CDA pattern employees of CPSEs drawing pay in 7th CPC pay scale.

Period of DA revisionDA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-202117 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-202017 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-202017 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-201917 %5 %DoE Notif., 14.10.19
01-01-2019 to 30-06-201912 %3 %DoE Notif., 27.02.19
01-07-2018 to 31-12-20189 %2 %DoE Notif., 07.09.18
01-01-2018 to 30-06-20187 %2 %DoE Notif., 15.03.18
01-07-2017 to 31-12-20175 %1 %
01-01-2017 to 30-06-20174 %
History of Dearness allowance DA (CDA) hike for central government employees of 7th Pay

Dearness allowance (DA) hike for 6th CPC central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs:

The DA has been hiked or increased to 164% from 154% w.e.f. 1st July 2019 for central government employees, central autonomous bodies and CDA pattern employees of CPSEs drawing pay in 6th CPC pay scale.

Period of DA revisionDA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-2021164 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-2020164 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-2020164 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-2019164 %10 %DoE Notif., 25.10.19
01-01-2019 to 30-06-2019154 %6 %DoE Notif., 08.03.19
01-07-2018 to 31-12-2018148 %6 %DoE Notif., 11.09.18
01-01-2018 to 30-06-2018142 %3 %DoE Notif., 28.03.18
01-07-2017 to 31-12-2017139 %3 %
01-01-2017 to 30-06-2017136 %4 %
History of Dearness allowance DA (CDA) hike for central government employees of 6th Pay

Also Read: High security registration plates (HSRP) is mandatory, its cost and how to apply online.

Dearness allowance (DA) hike for 5th CPC central govt. employees, central autonomous bodies and CDA pattern employees of CPSEs:

The DA has been hiked or increased to 312 % from 295 % w.e.f. 1st July 2019 for central government employees, central autonomous bodies and CDA pattern employees of CPSEs drawing pay in pre-revised 5th CPC pay scale.

Period of DA revision DA applicable (%) Inc. / Dec.in DA (%) Letter by DoE
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-2021312 %0 %DA Freezed till 30.06.21
01-07-2020 to 31-12-2020312 %0 %DA Freezed till 30.06.21
01-01-2020 to 30-06-2020312 %0 %DA Freezed till 30.06.21
01-07-2019 to 31-12-2019312 %17 %DoE Notif., 25.10.19
01-01-2019 to 30-06-2019295 %11 %DoE Notif., 08.03.19
01-07-2018 to 31-12-2018284 %10 %DoE Notif., 11.09.18
01-01-2018 to 30-06-2018274 %6%DoE Notif., 28.03.18
01-07-2017 to 31-12-2017268 %4 %
01-01-2017 to 30-06-2017264 %8 %
History of Dearness allowance DA (CDA) hike for central government employees of 5th Pay

Calculation of DA / DR hike from 1st January 2021 and 1st July 2021 for central government employees of 7th CPC pay scale:

The DA, DR hike from Jan 2021 calculation has been done after declaration of AICPIN-IW of Mar’21 month. The DA will not be hiked by Govt. of India at present as it is freezed till June 2021, but since the DA will be added for this period from 01.01.2020 to 30.06.2021 for July 2021 DA calculation. So, DA calculation is must, as the same number will be used for DA hike calculation.

DA Calculation for 7th CPC central government employees and CDA pattern employees of CPSEs :

The formula of DA calculation for 7th CPC pay scale for old base year is :

DA = [(Average of AICPIN-IW for last 12 months) – 261.4] / 261.4 x 100

The linking factor for AICPIN-IW old base year is 2.88 multiplied by AICPIN-IW new base year. So we can calculate the DA / DR hike from 1st July 2020, DA / DR hike from 1st Jan 2021 and finally DA / DR hike from 1st July 2021. While the hike of DA / DR from 1st Jan 2020, Govt. has already confirmed 4 %.

AICPIN-IW (Labour ministry Order)AICPIN-IW points (New base 2016=100)AICPIN-IW points (Old base 2001=100)AICPIN Average of last 12 monthsDA /DR calculated (%)DA hike (%)
June 2021
May 2021
April 2021
Mar-21119.6344338.5829.53
Feb-21119343337.0828.95
Jan-21118.2340335.8328.47
Dec-20118.8 342  335 28.16 = 28 3%
Nov-20119.9  345334 27.77  
Oct-20 119.5344 332.58 27.23  
Sep-20118.1340331.0026.63 
Aug-20 338329.5026.05 
Jul-20 336328.0025.48 = 254%
Jun-20 332326.5824.94 
May-20 330325.2524.43 
Apr-20 329323.9223.92 
Mar-20 326322.5023.37 
Feb-20 328321.0822.83 
Jan-20 330319.3322.16 
Dec-19 330317.4221.43 = 214%
Nov-19 328315.0020.50 
Oct-19 325312.8319.68 
Sep-19 322310.9218.94 
Aug-19 320309.1718.27 
Jul-19 319307.5817.67 
Jun-19 316306.0817.094%
DA rate for 7th CPC pay scale from 1st Jan 2021

Also read : FY 20-21 Income tax return e-filing, exemptions, deductions, e-payment, refund and excel calculator

This DA calculation is for record only so that whenever the DA / DR change will resume, all this DA will be added and implemented since then. Like it can be understood from this table that :

  1. For the period Jul’19 to Dec’19, DA was 17 % from 1st July 2019.
  2. For the period Jan’20 to Jun’20, increment of 4 %, DA will be 21 % from 1st Jan’2020.
  3. For the period Jul’20 to Dec’20, increment is 4 %, making DA 25 % from 1st July 2020.
  4. And, for the period Jan’21 to Jun’21, increment is 3 %, making DA 28 % from 1st Jan’2021.

Similarly, after the declaration of AICPIN of Jan to Jun 2021, DA / DR from 1st July 2021 or for period Jul’21 to Dec’21 will be known to us.

Also Read: Year 2021 Govt., Bank, State Govts., PSUs, Supreme court, NSE-BSE-MCX Public, Restricted, commercial holidays list

Calculation of DA / DR hike from 1st January 2021 and 1st July 2021 for central government employees of 6th CPC pay scale:

The DA will not be hiked by Govt. of India at present as it is freezed till June 2021, but since the DA will be added for this period from 01.01.2020 to 30.06.2021 for July 2021 DA calculation. So, DA calculation is must, as the same number will be used for DA hike calculation.

DA Calculation for 6th CPC pay scale of central govt. employees central autonomous bodies and CDA pattern employees of CPSEs:

The formula of DA calculation for 6th CPC pay scale for old base year is :

DA = [(Average of AICPIN-IW for last 12 months) – 115.76] / 115.76 x 100.

The linking factor for AICPIN-IW old base year is 2.88 multiplied by AICPIN-IW new base year. So we can calculate the DA / DR hike from 1st July 2020, DA / DR hike from 1st Jan 2021 and finally DA / DR hike from 1st July 2021.

AICPIN-IW (Labour ministry Order)AICPIN-IW points (New base 2016=100)AICPIN-IW points (Old base 2001=100)AICPIN Average of last 12 monthsDA /DR calculated (%)DA hike (%)
June 2021
May 2021
April 2021
Mar-21 119.6344338.58192.49
Feb-21119343337.08191.19
Jan-21118.2340335.83190.11
Dec-20 118.8342 335 189.39 =1897% 
Nov-20 119.9345 334 188.53  
Oct-20 119.5344 332.58 187.30  
Sep-20118.1340331.00185.94 
Aug-20 338329.50184.64 
Jul-20 336328.00183.34
Jun-20 332326.58182.12 = 182 8%
May-20 330325.25180.97 
Apr-20 329323.92179.82 
Mar-20 326322.50178.59 
Feb-20 328321.08177.37 
Jan-20 330319.33175.86 
Dec-19 330317.42174.20 = 17410%
Nov-19 328315.00172.11 
Oct-19 325312.83170.24 
Sep-19 322310.92168.59 
Aug-19 320309.17167.08 
Jul-19 319307.58165.71 
Jun-19 316306.08164.41 = 164 10%  
DA rate for 6th CPC pay scale from 1st Jan 2021

Also know: Post office and small savings Interest rates for Apr to Jun’21

This DA calculation is for record only so that whenever the DA / DR change will resume, all this DA will be added and implemented since then. Like it can be understood from this table that :

  1. For the period Jul’19 to Dec’19, DA was 164 % from 1st July 2019.
  2. For the period Jan’20 to Jun’20, increment of 10 %, DA will be 174 % from 1st Jan’2020.
  3. For the period Jul’20 to Dec’20, increment is 8 %, making DA 182 % from 1st July 2020.
  4. And, for the period Jan’21 to Jun’21, increment is 7 %, making DA 189 % from 1st Jan’2021.

Similarly, after the declaration of AICPIN of Jan to Jun 2021, DA / DR from 1st July 2021 or for period Jul’21 to Dec’21 will be known to us.

Also Read : Fixed deposit interest rates of all Govt. banks comparison

HRA hike and TA hike are also linked to DA as per 7th central pay commission:

  1. To know how much HRA (House Rent Allowances) will be hiked when DA increases, Click here.
  2. To know how much TA ( Travelling Allowances) will be hiked when DA increases, Click here.

DA increase for central govt. employees and DR increase for central Govt. pensioners from 1st Jan 2020:

The Government of India had already announced 4% increase in dearness allowance (DA) and DR for central government employees and pensioners with effect from 1st Jan, 2020, but later rolled back this decision of DA hike.

In the cabinet meeting held on 13th Mar, 2020, Government had decided to increase the dearness allowance (DA) for 48 lakh employees and 65 lakh pensioners. This hike has been announced only for employees drawing payment in 7th CPC pay scales. For 6th and 5th CPC pay, the hike is yet to be announced.

Before this hike, the dearness allowance (DA) was hiked by 5 % in October 2019 to 17% from 12% with effect from 1st July, 2019. Dearness allowance (DA) change decision comes 2 times a year effective from 1st Jan and 1st July every year only for central government employees and pensioners.

This decision of dearness allowance (DA) change is taken with the formula adopted in the 7th pay commission guidelines. Dearness allowance (DA) is adjustment for the cost of inflation and cost of living. The official letter regarding this is issued by Department of Expenditure (DoE) under Finance Ministry of Government of India.

Also Read : Nifty ETF – like NiftyBees, why it is best and safest in stock market?

Dearness Relief (DR) for Central Government pensioners / family pensioner hike for 7th CPC pay scale with DPPW letter:

Department of Pension & Pensioners’ Welfare under Ministry of Personnel, Public Grievances & Pensions announces the Dearness Relief two times in a year. Here, the last grant of Dearness Relief to Central Government pensioners / family pensioners, revised rate effective from 01.07.2019 has been issued. After that, from 1st Jan 2020 to 30th June 2021, the hike in DR has been freezed.

These rates of DR will be applicable to the following pensioners:

  1. Civilian Central Government Pensioners / Family Pensioners including Central Govt. absorbee pensioners in PSU / Autonomous Bodies in respect of whom orders have been issued vide this Department’s OM No. 4/34/2002-P&PW(D) Vol II dated 23.06.2017 for restoration of full pension after expiry of commutation period of IS years.
  2. The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates.
  3. All India Service Pensioners.
  4. Railway Pensioners / family pensioners.
  5. Pensioners who are in receipt of provisional pension.
  6. The Burma Civilian pensioners / family pensioners and pensioners / families of displaced Government Pensioners from Burma / Pakistan, in respect of whom orders have been issued vide this Department’s
  7. OM No. 23/3/2008-P&PW(B) dated 11.09.2017.

Past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale:

Below is the list of past DR hike for Central Government pensioners / family pensioner for 7th CPC pay scale. The official order has been attached under ‘letter by DPPW’.

Period of DR RevisionDR applicable (%)Inc. / Dec.in DA (%)Letter by DPPW
01-07-2021 to 31-12-2021
01-01-2021 to 30-06-202117 %0 %DR Freezed till 30.06.21
01-07-2020 to 31-12-202017 %0 %DR Freezed till 30.06.21
01-01-2020 to 30-06-202017 %0 %DR Freezed till 30.06.21
01-07-2019 to 31-12-201917 %5 %DPPW Notif., 21.10.19
01-01-2019 to 30-06-201912 %3 %DPPW Notif., 06.03.19
01-07-2018 to 31-12-20189 %2 %DPPW Notif., 18.09.18
01-01-2018 to 30-06-20187 %2 %DPPW Notif., 22.03.18
01-07-2017 to 31-12-20175 %1 %DPPW Notif., 28.09.17
01-01-2017 to 30-06-20174 %2 %DPPW Notif., 07.04.17
History of Dearness relief DR hike for central government pensioners of 7th CPC Pay scale

Also Read: Excel-income-tax-calculator for comparison between Old and New Tax structure.

Disclaimer: Kindly check for any clarification from official website.

3 thoughts on “DA hike for Central Govt. Employees, CDA based CPSE employees from 1st July 2021 and DR hike for Pensioners

  1. If I remember correctly it is first time that DA has been withheld. So far inspire of so many disasters, 65, 71 war. DA wasn’t held in fact while govt faced crunch the DA arrs used to be credited in to provedent fund and current was paid in cash.
    First time BJP so called Hindu Govt, filled it’s bags by asking public in shadow of Covid to donate new PM cares fund which is not under RTI , accountable to public., whereas PM relief fund already existed and was used for public so far and was under RTI if I am not wrong.
    Col B N Sharma Retired

Leave a Reply

%d bloggers like this: